GST Assessment Order Set Aside Due to Retrospective Amendment to Section 16; Matter Remanded

Issue: Whether a GST assessment order disallowing Input Tax Credit (ITC) is valid in light of the retrospective amendment to Section 16 of the GST Act, which extended the time limit for claiming ITC.

Facts:

The assessee challenged an assessment order related to availing ITC after the due date for the financial year 2019-20.
The assessee relied on the retrospective amendment to Section 16(5) of the GST Act, introduced by the Finance (No.2) Act, 2024, which came into effect from July 1, 2017.

Decision:

The court referred to previous decisions (W.P.(MD) Nos.25081 of 2024 and WP(MD) No.31980 of 2024) where similar assessment orders were quashed due to the retrospective amendment to Section 16.
Following these precedents, the court set aside the impugned assessment order.

Key Takeaways:

This case highlights the impact of retrospective amendments on GST assessments.
The court recognized the retrospective effect of the amendment to Section 16(5), which extended the time limit for claiming ITC.
This decision provides relief to taxpayers who may have missed the original deadline for claiming ITC, as the amendment allows them to claim it retrospectively.
The matter is remanded for reconsideration in light of the amended provision.

HIGH COURT OF MADRAS

Aamutham Enterprises

Superintendent of Central GST and Central Excise

K. Kumaresh Babu, J.

W.P.(MD) No.2642 of 2025,
W.M.P.(MD) No.1863 of 2025

JANUARY 30, 2025

N. Sudalai Muthu, for the Petitioner., R. Suresh Kumar, Additional Government Pleader for the Respondent.

ORDER

1. Heard Mr.N.Sudalai Muthu, learned counsel for the petitioner and Mr.R.Suresh Kumar, learned Additional Government Pleader for the respondent.

2. The Writ Petition has been filed challenging the order of the respondent dated 24.08.2024 passed for the F.Y.2019-20 on the ground that the same is made in violation of principles of natural justice.

3. The issue involved in the writ petition is to availing of Input Tax Credit after the due date. The said issue is no longer res integra. This Court in a batch of writ petitions in W.P.(MD)Nos.25081 of 2024 etc., dated 17.10.2024, by taking note of the amendment to Section 16(4) of the CGST Act which came into force with retrospective effect from 01.07.2017 had quashed the similar impugned orders and thereafter this Court in a similar issue in WP(MD)No.31980 of 2024 dated 06.07.2024 taking note of the amendment passed, had set aside the order of assessment and remitted the matter back to the assessing officer for passing order afresh.

4. The said order has not been disputed by the learned Additional Government Pleader appearing for the respondent.

5. In view of the same, the impugned order dated 24.08.2024 is set aside and the matter is remitted back to the respondent for fresh consideration in consonance with the amended provision of Section 16 of the GST Act.

6. In fine, the Writ Petition is allowed. There shall be no order as to costs. Consequently, connected miscellaneous petition is closed.