Platinum Ispat Industries Pvt. Ltd. Vs Union of India through the Commissioner of Central Tax (Patna High Court)
Patna High Court addressed a dispute regarding the denial of input tax credit (ITC) to Platinum Ispat Industries Pvt. Ltd. for the months of January to March in the assessment year 2018-19. The petitioner contested an assessment order dated April 9, 2024, which rejected their ITC claim due to delayed return filings in February 2020. The petitioner argued that the newly introduced Section 16(5) of the CGST Act allows ITC claims for financial years 2017-18 to 2020-21, provided returns were filed by November 30, 2021. Additionally, they referenced a government circular (No. 237/31/2024-GST) dated October 15, 2024, which provides a mechanism for rectifying orders where ITC was previously denied under Section 16(4).
The court acknowledged that under the special procedure outlined in the circular and Notification No. 22/2024, taxpayers can apply for rectification of orders issued under Sections 73, 74, 107, or 108 of the CGST Act. The process allows affected taxpayers to electronically request corrections through the GST portal. Based on these provisions, the court ruled that the petitioner is entitled to file a rectification application within the stipulated timeframe. The rectification request must be evaluated in accordance with the newly amended Section 16(5) and the government’s procedural guidelines. With this ruling, the writ petition was disposed of, providing the petitioner an opportunity to reclaim the denied ITC through the prescribed rectification process.
