Rajib Agarwala vs. The Union Of INDIA And 5 Ors.

Held

The Court held that the Petitioner is entitled to the benefit of the Input Tax Credit (ITC) amounting to Rs. 84,58,480/-. This decision was based on the newly inserted Sub-Section (5) of Section 16 of the Central Goods and Services Tax Act, 2017. The Court noted that Section 16(5) stipulates that notwithstanding anything contained in sub-section (4), a registered person shall be entitled to take ITC in any return under section 39 filed up to November 30, 2021, for invoices or debit notes pertaining to Financial Years 2017-18, 2018-19, 2019-20, and 2020-21. Since the Petitioner had submitted a return on October 23, 2019, for the Financial Year 2018-19, the ITC claimed could not be denied. Consequently, the impugned Order-in-Original dated March 13, 2024, passed by the Assistant Commissioner, Goods and Services Tax, Guwahati Division-I, was set aside and quashed. The Court did not expressly leave any issue undecided.

Facts

The Petitioner, DM Services Private Limited, filed a writ petition challenging an Order-in-Original dated March 13, 2024, passed by the Assistant Commissioner, Goods and Services Tax, Guwahati. The Petitioner's grievance stemmed from two main points: the extension of the period for exercising powers under Section 73 of the Central Goods and Services Tax Act, 2017, via Notification No. 9/2023-CT dated March 31, 2023, and the denial of Input Tax Credit (ITC) despite the Petitioner having filed a return on October 23, 2019. The amount of ITC in dispute was Rs. 84,58,480/-. The Petitioner argued that the insertion of Section 16(5) into the Act of 2017 by the Finance Act, 2024, should govern the case.

Key Issues

1. Whether the extension of the period for exercising powers under Section 73 of the Central Goods and Services Tax Act, 2017, vide Notification No. 9/2023-CT dated March 31, 2023, is valid in this case? 2. Whether the Petitioner is entitled to the benefit of Input Tax Credit (ITC) availed/utilized, given that the return was filed on October 23, 2019, and considering the provisions of Section 16(5) of the Act of 2017? Petitioner's Contention: The Petitioner argued that the writ petition could be disposed of based on the newly inserted Section 16(5) of the Act of 2017, which allows registered persons to claim ITC in a return filed up to November 30, 2021, for supplies pertaining to Financial Years 2017-18, 2018-19, 2019-20, and 2020-21. Revenue's Contention: The judgment records no specific arguments from the Respondent revenue authorities on these issues.