M/S Horizon Entrade Private Limited vs. Assistant Commissioner Of State Taxes And Three Ors
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The petitioners, Manoj Konwar and M/s Horizon Entrade Private Limited, filed writ petitions challenging actions by the revenue authorities concerning input tax credit (ITC) for specific financial years. The core of their grievance related to the inability to claim ITC on invoices or debit notes pertaining to the Financial Years 2017-18, 2018-19, 2019-20, and 2020-21. The petitioners had submitted their relevant invoices/debit notes prior to November 30, 2021. The revenue authorities are the Assistant Commissioner, Central Goods and Services Tax, Tezpur Division, and the Assistant Commissioner of State Taxes, Circle-Guwahati-C-5, along with the Union of India and the State of Assam.
Held
The Court held that the grievance raised by the writ petitioners in their petitions has been redressed due to the amendment of the Central Goods and Services Tax (CGST) Act, 2017. Specifically, the insertion of sub-section (5) in Section 16 of the CGST Act, 2017, by the Finance (No. 2) Act, 2024, provides relief. This new sub-section states that notwithstanding anything contained in sub-section (4), a registered person shall be entitled to take input tax credit in any return under section 39, which is 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 petitioners had submitted their relevant invoices/debit notes for the financial year 2018-19 prior to November 30, 2021, their case falls within the ambit of the newly inserted sub-section (5) of Section 16. Consequently, no further orders were deemed necessary, and the writ petitions were disposed of.
Key Issues
1. Whether the petitioners are entitled to claim input tax credit for invoices or debit notes pertaining to the Financial Years 2017-18, 2018-19, 2019-20, and 2020-21, given the existing provisions of the Central Goods and Services Tax (CGST) Act, 2017. Petitioner's Contention: The petitioners argued that their grievance regarding the claim of ITC for the specified financial years should be redressed. They relied on the subsequent amendment to the CGST Act which, they contended, addressed their issue. Revenue's Contention: The revenue authorities did not explicitly present arguments against the petitioners' claim in the judgment. However, the judgment notes that learned counsel for the respective parties were in agreement that the amendment to Section 16 of the CGST Act, 2017, had redressed the petitioners' grievances.
Sections Cited
Section 16, Section 39
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Heard together (2 matters)
Read from the judgment's own cause title. This page is filed under one of them.
Page No.# 1/4 GAHC010032552024
THE GAUHATI HIGH COURT (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH) Case No. : WP(C)/789/2024 MANOJ KONWAR S/O TILESWAR KONWAR R/O WARD NO. 5 RATANPUR NO. 1 NAGAKHELIA DHEMAJI ASSAM 787057 AND HSVING ITS OFFICE AT WARD NO 3 DHEMAJI TOWN DHEMAJI ASSAM 787057DHEMAJI ASSAM VERSUS ASSTSTANT COMMISSIONER AND THREE OTHERS CENTRAL GOODS AND SERVICES TAX, TEZPUR DIVISION, L.B. ROAD, P.O.TEZPUR, ASSAM - 784001. 2:UNIONOF INDIA REPRESENTED BY THE SECRETARY TO THE GOVERNMENT OF INDIA MINISTRY OF FINANCE (DEPARTMENT OF REVENUE) NO.137 NORTH BLOCK NEW DELHI-110001 3:THE STATE OF ASSAM REPRESENTED BY THE COMMISSIONER AND SECRETARY TO THE GOVERNMENT OF ASSAM DEPARTMENT OF FINANCE AND TAXATION ASSAM SECRETARIAT DISPUR GUWAHATI - 781 006 4:GSTN (GOODS AND SERVICE TAX NETWORK THROUGH ITS CEO EAST WING WORLDMARK 1 4TH FLOOR
Page No.# 2/4 TOWER B AEROCITY NEW DELHI- 11003 Advocate for the Petitioner : MR PRATYUSH DAS, MR. SHRAFF,MR. V SARAF,MS. N UPADHYAY,MR. Z ISLAM Advocate for the Respondent : SC, GST, SC, FINANCE AND TAXATION Linked Case : WP(C)/788/2024 M/S HORIZON ENTRADE PRIVATE LIMITED IS A PRIVATE LIMITED COMPANY HAVING ITS PRINCIPAL PLACE OF BUSINESS AT SARASWATI VIHAR R.G.B ROAD NEAR NRL PETROL PUMP KAMRUP METROPOLITIAN ASSAM - 781005 AND IN THE PRESENT PROCEEDINGS REPRESENTED BY ITS DIRECTOR MR. ASHOK AGARWAL. VERSUS ASSISTANT COMMISSIONER OF STATE TAXES AND THREE ORS CIRCLE- GUWAHATI- C- 5 KAR BHAWAN DISPUR GUWAHATI- 781 006. 2:THE UNION OF INDIA REPRESENTED BY THE SECRETARY TO THE GOVERNMENT OF INDIA MINISTRY OF FINANCE (DEPARTMENT OF REVENUE) NO.137 NOFTH BLOCK NEW DELHI-110001. 3:THE STATE OF ASSAM REPRESENTED BY THE COMMISSIONER AND SECRETARY TO THE GOVERNMENT OF ASSAM DEPARTMENT OF FINANCE AND TAXATION ASSAM SECRETARIAT DISPUR
Page No.# 3/4 GUWAHATI - 781 006. 4:GSTN (GOODS AND SERVTCE TA)( NETWORK) THROUGH ITS CEO EAST WING WORLDMARK 1 4TH FLOOR TOWER B AEROCITY NEW DELHI - 110037 ------------
For the petitioner/appellant(s) : Mr. Shraff, Advocate (through VC)
For respondent(s) : Mr. B. Choudhury, SC, Finance Mr. S. C. Keyal, SC, GST
– BEFORE – HON’BLE THE CHIEF JUSTICE MR. VIJAY BISHNOI HON’BLE MR. JUSTICE KARDAK ETE
2024 (Vijay Bishnoi, CJ)
Learned counsel appearing for the respective parties are in agreement that with the amendment of the Central Goods and Services Tax (CGST) Act, 2017, particularly by insertion of sub-section (5) in Section 16, the grievance raised by the writ petitioners in this writ petition have been redressed. With the coming into force of the Finance (No. 2) Act, 2024, a new sub-section (5) has been inserted in Section 16 of the CGST Act, 2017, which reads as under: “(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 up to the thirtieth day of November, 2021.”
Page No.# 4/4 Admittedly, the petitioners have submitted their invoice/debit note pertaining to the financial year 2018-19 and, that too, prior to 30.11.2021 and, therefore, the case of the petitioners very well comes under the provisions of sub-section (5) of Section 16. Hence, no further order is required to be passed in these writ petitions and the same are accordingly disposed of.
JUDGE CHIEF JUSTICE 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.