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M/S. Gowni Palli Murali vs. The Union Of INDIA

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WP/14028/2024HC Andhra PradeshGSTCNR APHC01028024202402 July 2025Bench: DHIRAJ SINGH THAKUR,R RAGHUNANDAN RAO8 pages

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Cause title — parties, addresses and appearances
APHC010280242024 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) |:9O Jb. O THURSDAY,THE TWENTY FOURTH DAY OF JULY TWO THOUSAND AND TWENTY FIVE ^ PRESENT HON’BLE SRI JUSTICE DHIRAJ SINGH THAKUR, THE CHIEF JUSTICE AND HON’BLE SRI JUSTICE R RAGHUNANDAN RAO WRIT PETITION NO: 14028 OF 2024 Between: M/s. Gowni Palli Murali, 7/429-B, NGO Colony, Kadapa, YSR District, Andhra Pradesh - 516002, rep. by its Proprietor, Gowni Palli Murali. ...Petitioner AND 1. The Union of India, rep. by its Secretary (Finance), Ministry of Finance, North Block, New Delhi - 110001. 2. The State of Andhra Pradesh, Rep. by the Secretary to the Government, Revenue (CT) Department, A.P. Secretariat Buildings, Velagapudi, Guntur District, Andhra Pradesh 3. The Assistant Commissioner (ST), Kadapa-I Circle, D. No. 1/499, I Floor, Opp YSR Guest House, Smith Road, Kadapa, YSR District, Andhra Pradesh - 516001. 4. The Goods and Service Tax Council, Rep. by its Secretary, GST Secretariat, 5th Floor, Tower-ll, Jeevan Janpath Road, Connaught Place, New Delhi-110 001. Near Zilla Parishad Council Bharti Building 5. The Central Board of Indirect Taxes and Customs, Rep. by its Chairman, Ministry of Finance, Department of Revenue, North Block, Central Secretariat, New Delhi-110 001. ...Respondents Petition under Article 226 of the Constitution of India praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue an appropriate Writ, Order or Direction, more particularly in the nature of Mandamus i. Declaring that the impugned Notification No. 56/2023, Central Tax, dated 28-12-2023, issued by the First and Fifth Respondents, and the impugned G.O. Ms. No. 221 Taxes) Department, dated 17-05- 2023 issued by the Second Respondent, under S. 168-A of the COST Act, 2017, extending the Period of Limitation prescribed u/S. 73(10) of the COST Act, 2017, for the Financial Year 2018- 19, till 30-04-2024, are ultravires Section 168-A of the COST Act, 2017, manifestly arbitrary, violative of Article 14 of the Constitution of India, illegal and consequently quash the same, ii. Declaring S. 16(4) of the CGST/SGST Acts, 2017, as violative of Article 14, 19 (1)(g) and 300-A of the Constitution of India or in the alternative hold that S. 16(4) is not applicable to the present case Revenue (Commercial or declare that the period of limitation prescribed in S. 16(4) is only procedural in nature and that S. 16(2) has overriding effect over S. 16(4) while claiming eligible input tax in the respective monthly GSTR 3B return, iii. Declaring the impugned Assessment, Penalty and Interest Order, vide DIN No. DIN3729042438747 / Order No. ZD370424028929Y, dated 29-04-2024, passed by the Third Respondent for the Financial Year 2018-19 under S. 73 of the CGST/SGST Acts, 2017, as barred by limitation, contrary to law, without jurisdiction, unjustified, unsustainable and illegal and consequently set aside the same. lA NO: 1 OF 2024 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to grant stay of all further proceedings including collection penalty pursuant to the impugned Assessment,

vide DIN No. DIN3729042438747 / Order of tax, interest and Penalty and Interest Order No. ZD370424028929Y, dated 29- 04-2024, passed by the Third Respondent, for the Financial Year 2018-19 under the CGST/SGST Acts, 2017. Counsel for the Petitioner: SRI G NARENDRA Counsel for the Respondent No. 1: SRI VENNA HEMANTH KUMAR(CENTRAL government COUNSEL) Counsel for the Respondent Nos. 2 and Counsel for the Respondent Nos. 4 and FOR CBIC The Court made the following order: CHETTY 3: GP FOR COMMERCIAL TAX 5: SRI SANTHI CHANDRA SC

APHC010280242024 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Juri iction) [3446] THUR AY,THE TWENTY FOURTH DAY OF JULY TWO THOUSAND AND TWENTY FIVE PRESENT HONOURABLE THE CHIEF JUSTICE DHIRAJ SINGH THAKUR THE HONOURABLE SRI JUSTICE R RAGHUNANDAN RAO WRIT PETITION NO: 14028/2024 Between: M/s. Gowni Palli Murali, ...PETITIONER AND The Union Of India and Others Counsel for the Petitioner: 1.G NARENDRA CHETTY Counsel for the Respondent(S): 1.VENNA HEMANTH KUMAR(CENTRAL GOVERNMENT COUNSEL) 2.GP FOR COMMERCIAL TAX The Court made the following order: (per Hon’ble Sri Justice R. Raghunandan Rao) ...RESPONDENT(S) Heard Sri G. Narendra Chetty, learned counsel appearing for the petitioner and the learned Government Pleader for Commercial Taxes, appearing for the respondents. The petitioner which was earlier registered under the A.P.

2.

VAT Act has transitioned to the GST regime after the GST Act came into force from 01.07.2017. The petitioner was required to file returns, within time, as prescribed under the GST Act and Rules. However, the petitioner was unable to file the appropriate GSTR 3B returns for the months of May, June, October, November and December, 2018 and in the months of January, February and March, 2019 within the time stipulated under the Act and Rules. These returns were filed on 29.09.2021. The 3'^'^ respondent issued a show cause notice, dated 30.01.2024, calling upon the petitioner to show cause why these returns should not be disregarded, as Section 16(4) of the GST Act prescribed a time limit within which the returns ought to have been filed and that the petitioner had not filed the aforesaid returns within the time stipulated therein. The petitioner filed its objections. Thereafter, the 3'"^ respondent passed an order, on 29.04.2024, rejecting the request of the petitioner to grant input tax credit, in accordance with the returns filed for the 3. aforesaid months.

4.

Aggrieved by the said order of rejection, the petitioner has approached this Court, by way of the present Writ Petition.

5.

During the pendency of this Writ Petition, the GST Act came to be amended, by Finance Act, 2024, w.e.f. 27.09.2024. Under this amendment, sub section 5 was added to Section 16 of the GST act. The learned counsel for the petitioner submits that by virtue of insertion of Section 16(5), the time limit within which the returns could be filed had been extended till 30.11.2021 and that the petitioner would be entitled to the benefit of the said extension of time.

6.

Learned counsel for the petitioner would contend that Section 16(5) overrides the requirements of sub section (4) of Section 16 and the petitioner would be entitled to the benefit of Input Tax Credit as the period concerned is the Financial Year 2018-2019 and the returns have been filed much before 30.11.2021. 7. Heard the learned Government Pleader for Commercial Taxes.

8.

A Division Bench of this Court, had considered the same issue, in its judgment dated 19.03.2025 in W.P.No.2555 of 2023. The Division Bench after consider the effect of sub section (5) of Section 16 of the GST Act, in a similar situation, had held that the petitioner, by virtue of the non-obstante clause, available in the provision, would be entitled to avail the credit which was rejected by the Assessing Officers, in the case before the Division Bench.

9.

A perusal of the facts in the present case would show that the facts in this case are similar to the facts in the case before the Division Bench in W.P.No.2555 of 2023. 10. In the circumstances, this Writ petition is allowed setting aside the order of Assessment, dated 30.04.2024, and the matter is remanded back to the 3^^ respondent to pass a fresh assessment order keeping in view the insertion of Section 16{5) of the CGST Act. There shall be no order as to costs. As a sequel, miscellaneous petitions, pending if any, shall stand closed. V.DIWAKAR DEPUTY REGISTRAR //// SECTION OFFICER To,

1.

The Secretary (Finance), Ministry of Finance, Union of India, North Block, New Delhi - 110001. 2. The Secretary to the Government, Revenue (CT) Department, State of Buildings, Velagapudi, Guntur Andhra Pradesh, A.P. Secretariat District, Andhra Pradesh ^.

3.

The Assistant Commissioner (ST), Kadapa-I Circle, D. No. 1/499, I Opp YSR Guest House, Smith Road, Near Zilla Parishad, Kadapa, YSR District, Andhra Pradesh - 516001. 4. The Secretary, Goods and Service Tax Council, GST Council, Secretariat, 5th Floor, Tower-ll, Jeevan Bharti Building, Janpath Road, Floor, Connaught Place, New Delhbl lO 001. 5. The Chairman, Central Board of Indirect Taxes and Customs, Ministry of Finance, Department of Revenue, North Block, Central Secretariat, New Delhi-110 001. 6. One CC to Sri. G Narendra Chetty Advocate [OPUC]

7.

One CC to Sri. Venna Hemanth Kumar(Central Government Counsel) [OPUC]

8.

Two CCs to GP For Commercial Tax, High Court of Andhra Pradesh [OUT]

9.

Two CD Copies

' ’ HIGH COURT DATED:24/07/2025 ORDER WP NO. 14028 OF 2024 ALLOWING THE WP WITHOUT COSTS

Reproduced from the public record of the Andhra Pradesh High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.