Med Biogenex Private Limited vs. Superintendent, CGST And Cx, Range-Vii, Bbd Bag-Ii Div And Ors.
Original PDF →Facts
The petitioner, Med Biogenex Private Limited, filed a writ petition challenging an order dated April 29, 2024, passed under Section 73 of the CGST Act, 2017. This order disallowed Input Tax Credit (ITC) claimed by the petitioner for the tax period November 2018 to March 2019. The disallowance was based on the petitioner filing their GSTR-3B returns beyond the due date. The petitioner argued that a recent amendment, the West Bengal Goods and Services Tax (Amendment) Act, 2024, notified on January 10, 2025, inserted sub-Section (5) to Section 16 of the Act. This amendment, effective from July 1, 2017, withdrew the penal effect of sub-Section (4) of Section 16 for specific financial years, including 2018-19, by extending the cut-off date for filing returns up to November 30, 2021. The petitioner contended that their returns were filed within this extended period.
Held
The Court held that the petitioner could not be denied the benefit of the amendment to Section 16 of the CGST Act, 2017. The Court noted that the ITC had been disallowed because the petitioner filed their GSTR-3B returns beyond the due date. However, with the insertion of sub-Section (5) to Section 16, the returns filed by the petitioner for the tax period November 2018 to March 2019 were regularized, considering the new cut-off date provided in the amended provision. The Court reasoned that the amendment, which effectively extended the period for filing returns and withdrew penal consequences for certain financial years including 2018-19, should be applied. Therefore, the Court permitted the petitioner to apply before the appropriate authority by making an appropriate rectification application to avail the benefit of the amended provision. The ratio decidendi is that legislative amendments providing relief for past periods, especially those withdrawing penal consequences, should be given effect to, and taxpayers should be allowed to avail such benefits through prescribed rectification procedures.
Key Issues
1. Whether the disallowance of Input Tax Credit (ITC) by the Superintendent, Central Goods & Services Tax, for the tax period November 2018 to March 2019, based on the petitioner filing GSTR-3B returns beyond the original due date, is sustainable in light of the subsequent amendment to Section 16 of the CGST Act, 2017? Petitioner's arguments: The petitioner contended that the insertion of sub-Section (5) to Section 16 of the CGST Act, 2017, with effect from July 1, 2017, by the West Bengal Goods and Services Tax (Amendment) Act, 2024, effectively withdrew the penal consequences of filing returns beyond the due date for the financial years 2017-18, 2018-19, 2019-20, and 2020-21. They argued that their returns for the period November 2018 to March 2019 were filed within the extended cut-off date provided by this amendment. They also referred to a circular dated October 15, 2024, from the Central Board of Indirect Taxes and Customs (CBIC) permitting rectification applications to avail the benefit of the amended provision. Revenue's arguments: The CGST authority acknowledged the petitioner's submissions but stated that the petitioner's case for rectification could only be considered upon filing an appropriate application electronically.
Sections Cited
Section 73, Section 39, Section 16, Section 64
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2025 Item No. AD 10 Ssi Ct.5
WPA 19986 of 2024
Med Biogenex Private Limited versus Superintendent, Central Goods & Services Tax & Central Excise, Range- VII, BBD BAG-II & Ors.
Mr. Debanuj Basu Thakur …For the petitioner Mr. Bhaskar Prosad Banerjee Mr. Tapan Bhanja …For the CGST authority
Challenging the order dated 29th April 2024 passed under Section 73 of the WSBGST /CGST 2017 (hereinafter referred to as the “said Act”) for the tax period from November 2018 to March 2019, whereby the ITC claimed by the petitioner on the basis of the returns filed under Section 39 of the said Act in Form GSTR 3B beyond the due date, had been disallowed, the instant writ petition has been filed.
Mr. Thakur, learned advocate appearing for the petitioner by drawing attention of this Court to the West Bengal Goods and Services Tax (Amendment) Act, 2024 which has been notified in the Kolkata Gazette on 10th January 2025, would submit that sub- Section (5) to Section 16 of the said Act has been inserted with effect from 1st July 2017, whereby the penal effect contained in sub-Section (4) of Section 16 of the said Act in respect of invoices or debit note for supply of goods or services or both pertaining to the financial years 2017-18, 2018-19, 2019-20 and 2020-
2 21 has been withdrawn, by extending the cut off date for filing of returns upto 30th November 2021. 3. By drawing attention of this Court to the order dated 29th April, 2024 whereby the claim for ITC having regard to Section 64 of the said Act has been disallowed, he submits that the returns filed in Form GSTR 3B was filed within the extended cut of date as provided for in Section 16(5) of the said Act. It is submitted that to give effect to the aforesaid provision, the Central Board of Indirect Taxes and Customs, GST Policy Wing by circular dated 15th October 2024 has permitted the registered tax payers to file appropriate rectification application which is required to be filed as per notification dated 8th October, 2024 along with proforma in Annexure – A, as such he seeks leave to apply for availing the benefit of the amended provision.
Mr. Banerjee, learned Advocate appearing for the CGST authority acknowledges the above. He, however, submits that it is only on the basis of an appropriate application to be filed electronically that the petitioner’s case for rectification can be considered.
Having heard the learned advocates appearing for the respective parties and noting that in this case, the ITC had been disallowed by reasons of the petitioner filing the return in Form GSTR 3B beyond the due date, and on the basis of insertion of sub- section (5) to Section 16, the returns filed by the
3 petitioner which are in respect of the tax period from November 2018 to March 2019 have now been regularized having regard to the new cut of date provided for in Section 16(5) of the said Act, I am of the view that the petitioner cannot be denied the benefit of the aforesaid amendment.
Having regard thereto, I permit the petitioner to apply before the appropriate authority by making appropriate rectification application.
With the aforesaid observations and directions, the writ petition being WPA 19986 of 2024 is accordingly disposed of.
(Raja Basu Chowdhury, J.)
Reproduced from the public record of the Calcutta High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.