Amit Jasrasaria vs. The Union Of INDIA And 4 Ors
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The petitioner, Amit Jasrasaria, representing M/s Nathmal Jugal Kishore, challenged an order dated April 26, 2024, by the Assistant Commissioner, Central GST and Central Excise, Dibrugarh. This order rejected his claim for Input Tax Credit (ITC) amounting to Rs. 79,05,895/- for the financial year 2018-2019. The rejection was based on the ground that the GSTR-3(B) return for the said period was filed on October 23, 2019, which was after the due date of October 20, 2019, thereby contravening Section 16(4) of the CGST Act, 2017. A Demand-cum-Show Cause Notice dated December 27, 2023, had preceded the impugned order.
Held
The Court held that the challenge made in the present proceeding was no longer required to be addressed due to the amendments brought in by the Finance (No. 2) Act, 2024. Specifically, the newly inserted sub-section (5) of Section 16 of the CGST Act, 2017, provides that notwithstanding anything contained in sub-section (4), for invoices pertaining to financial years 2017-18, 2018-19, 2019-20, and 2020-21, a registered person shall be entitled to take input tax credit in any return under Section 39 filed up to November 30, 2021. Since the amendments were notified with retrospective effect from July 1, 2017, the petitioner is entitled to avail the benefit of ITC for the relevant period, subject to the conditions prescribed in the newly inserted sections. The impugned order dated April 26, 2024, and the preceding Demand-cum-Show Cause Notice dated December 27, 2023, were set aside as they had been rendered redundant by the amendments. The matter was remanded back to the Assistant Commissioner for issuing a fresh Show Cause Notice and proceeding to its logical conclusion after affording the petitioner a due opportunity of hearing.
Key Issues
1. Whether the petitioner is entitled to avail Input Tax Credit (ITC) for the financial year 2018-2019, despite filing the GSTR-3(B) return after the prescribed due date, in light of the amendments to Section 16 of the CGST Act, 2017. The petitioner contended that subsequent amendments to Section 16 of the CGST Act, 2017, specifically the insertion of sub-sections (5) and (6) by the Finance (No. 2) Act, 2024, with retrospective effect from July 1, 2017, would permit him to claim the ITC. These amendments, he argued, allowed for ITC claims for financial years 2017-18, 2018-19, 2019-20, and 2020-21 to be made in returns filed up to November 30, 2021. The respondents, represented by the learned standing counsel for the CGST Department, fairly submitted that the amendments brought in by the Finance (No. 2) Act, 2024, and Notification No. 17/2024-Central Tax, dated September 27, 2024, have retrospective effect from July 1, 2017. This admission implies that the respondents acknowledged the potential applicability of the amended provisions to the petitioner's case.
Sections Cited
Section 16(4), Section 16(5), Section 16(6), Section 39, Section 37, Section 29, Section 30
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
ORDER Date : 07.08.2025
Heard Mr. D. Saraf, learned counsel for the petitioner. Also heard Mr. S. C. Keyal, learned standing counsel, Central Goods and Services Tax Department, appearing on behalf of the respondents.
The petitioner, in the present proceeding, has presented a challenge to an order, dated 26-04-2024, rejecting his claim for availment of the Input Tax Credit(ITC) amounting to Rs. 79,05,895/-, for the period 2018-2019, on the ground that the returns i.e. GSTR-3(B) returns for the said financial year, was filed on 23-10-2019, when the due date for filing of such claim was on 20-10- 2019, and accordingly, applying the provisions of Section 16(4) of the Central Goods and Services Tax(CGST) Act, 2017; the said claim was so rejected.
At this stage, it is to be noted that the provisions of Section 16 of the Central Goods and Services Tax(CGST) Act, 2017, as it stood before its amendment, provides for the eligibility conditions for taking the Input Tax Credit(ITC) for the registered persons.
Section 16(4), thereof, provides for, as under:
“4. A registered person shall not be entitled to take input tax credit in respect of any invoice or debit note for supply of goods or services or both after the [thirtieth day of November] following the end of financial year to which such invoice or [xxx] debit note pertains or furnishing of the relevant annual return, whichever is earlier: [PROVIDED that the registered person shall be entitled to take input tax credit after the due date of furnishing of the return under Section 39 for the month of September, 2018 till the due date of furnishing of the return under the said section for the month of March, 2019 in respect of any invoice or invoice relating to such debit note for supply of goods or services or both made during the financial year 2017-18, the details of which have been uploaded by the supplier under sub-Section (1) of Section 37 till the due date for furnishing the details under sub-section (1) of the said section for the month of March, 2019.]”
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An amendment was effected to the Finance Act by way of Finance (No. 2)Act of 2024 and sub-Sections 5 & 6 were incorporated in the provisions of Section 16 of the Central Goods and Services Tax (CGST) Act, 2017. 6. The provisions of Sections 5 & 6, as incorporated vide the said amendment; being relevant, is extracted hereinbelow: “(5) Notwithstanding anything contained in sub-section (4), in respect of an invoice or debit note for supply of goods or services or both pertaining to the Financial Years 2017-18, 2018-19, 2019-20 and 2020-21, the registered person shall be entitled to take input tax credit in any return under Section 39 which is filed upto the thirtieth day of November, 2021. (6) Where registration of a registered person is cancelled under section 29 and subsequently the cancellation of registration is revoked by any order, either under section 30 or pursuant to any order made by the Appellate Authority or the Appellate Tribunal or Court and where availment of input tax credit in respect of an invoice or debit note was not restricted under sub-section (4) on the date of order of cancellation of registration, the said person shall be entitled to take the input tax credit in respect of such invoice or debit note for supply of goods or services or both, in a return under Section 39,- (i) filed upto thirtieth day of November following the financial year to which such invoice or debit note pertains or furnishing of the relevant annual return, whichever is earlier; or (ii) for the period from the date of cancellation of registration or the effective date of cancellation of registration, as the case may be, till the date of order of revocation of cancelation of registration, where such return is filed within thirty days from the date of order of revocation of cancellation of registration.”
The said amendment was so notified by the Central Government in the Finance Department, vide Notification No. 17/2024-Central Tax, w.e.f. 01-07- 2017. 7. A careful perusal of the provisions revealed that notwithstanding anything contained under Section 16(4) of the Central Goods and Services Tax(CGST) Act, 2017, in respect of any invoice or debit note for supply of goods or services, or, both pertaining to financial years 2017-18, 2018-19, 2019-20 and 2020-21, the registered person shall be entitled to take Input Tax Credit(ITC) in any return under Section 39 which is filed upto 30th day of November, 2021. Page No.# 4/5
A conjoint reading of these amended provisions reveal that the challenge made in the present proceeding before this Court, is no longer required to be addressed in view of the amendments brought in by the Finance(No.2) Act, 2024. 9. Accordingly, in view of the amendments brought in, it is evident that the petitioner, herein, is entitled to avail the benefit of Input Tax Credit(ITC) for the relevant period.
Mr. Keyal, learned standing counsel, Central Goods and Services Tax Department, appearing for the respondents, has fairly submitted that in view of the amendments brought in by the Finance(No.2) Act, 2024 and in view of the Notification No.17/2024-Central Tax, dated 27-09-2024; the amendments brought in to Section 16, thereof, have already taken effect with retrospective effect i.e. w.e.f. 01-07-2017. 11. As such, in view of the amendments brought in, the petitioner, herein, is entitled to get the claim of the Input Tax Credit(ITC) subject to the conditions prescribed in the newly inserted Sections 16(5) and 16(6) of the Central Goods and Services Tax(CGST) Act, 2017[inserted vide Finance (No.2) Act, 2024].
In view of the amendments brought into the statute by the Finance (No.2) Act, 2024 and which amendments have been given retrospective effect from 01.07.2017; the proceeding initiated against the petitioner, herein, by way of serving a Demand-cum-Show Cause Notice, dated 27-12-2023, has been rendered redundant.
Accordingly, in view of the amended provisions of Section 16 of the Central Goods and Services Tax(CGST) Act, 2017, more particularly, incorporation of sub-
Page No.# 5/5 Section 5, therein; this Court, proceeds to set aside the impugned order, dated 26-04-2024. Consequently, the Demand-cum-Show Cause Notice, dated 27-12- 2023, also stands set aside.
Having interfered with the order, dated 26-04-2024; the matter is remanded back to the Assistant Commissioner, Central Goods and Services Tax, Dibrugarh Division, Dibrugarh, for issuing a fresh Show Cause Notice to the petitioner, herein, and thereafter, to take the matter to its logical conclusion after affording to the petitioner, herein, a due opportunity of hearing.
With the above directions and observations, this writ petition accordingly stands disposed of.
JUDGE Comparing Assistant
Reproduced from the public record of the Gauhati High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.