H. R. Constructions Vs Superintendent of Central Tax and Others (Andhra Pradesh High Court)
The Andhra Pradesh High Court considered a challenge to an assessment order dated 18.02.2021 directing the petitioner to pay or reverse Input Tax Credit of Rs.16,34,365/- allegedly availed beyond the time prescribed under Section 16(4) of the CGST Act, 2017 read with Section 20 of the IGST Act. The petitioner had availed the ITC relating to Financial Year 2018-19 on 20.12.2019, whereas the prescribed date was 20.10.2019.
The petitioner submitted that Section 16(5), introduced subsequently, permitted ITC relating to Financial Years 2017-18 to 2020-21 where the return under Section 39 was filed up to 30.11.2021. The petitioner stated that the ITC had been availed before that extended date and sought setting aside of the assessment order. The respondents did not dispute the submission but pointed out that the petitioner had already filed an appeal pursuant to an earlier direction of the Court.
The Court noted that Section 16(5) allowed eligible ITC where the return under Section 39 was filed on or before 30.11.2021. Considering the petitioner’s submission that the appeal would be withdrawn and that the challenge to Section 16(4) and Section 20 of the IGST Act was no longer being pursued, the Court set aside the assessment order dated 18.02.2021 in view of the introduction of Section 16(5).
