Arunas Snack Product vs. The State Of Assam And 2 Ors.
Original PDF →Facts
The petitioner, Arunas Snack Product, a partnership firm, filed a writ petition challenging an order passed by the Deputy Commissioner of State Tax, Guwahati-B-10. The dispute pertains to input tax credit claimed for invoices/debit notes related to the financial year 2018-2019. The petitioner had submitted these documents prior to November 30, 2021. The State of Assam and its tax authorities are the respondents. The writ appeal arises from the proceedings before the Gauhati High Court.
Held
The Court held that the grievance raised by the writ petitioner has been redressed with the amendment of the Central Goods and Services Tax (CGST) Act, 2017, specifically the insertion of sub-section (5) in Section 16. This new sub-section, effective from the Finance (No. 2) Act, 2024, allows registered persons to claim input tax credit for invoices or debit notes pertaining to financial years 2017-18, 2018-19, 2019-20, and 2020-21, provided they are filled in any return under section 39 up to November 30, 2021. Since the petitioner admittedly submitted their invoice/debit note for the financial year 2018-2019 prior to November 30, 2021, their case falls under this provision. The respondent authorities were directed to consider the matter and pass an appropriate order in light of Section 16(5) of the CGST Act, 2017. No coercive action is to be taken against the petitioner pursuant to the order dated January 1, 2024, passed by the Deputy Commissioner of State Tax.
Key Issues
1. Whether the petitioner is entitled to claim input tax credit for invoices/debit notes pertaining to the financial year 2018-2019, submitted prior to November 30, 2021, in light of the amendment to Section 16 of the CGST Act, 2017? The petitioner contended that the insertion of sub-section (5) to Section 16 of the CGST Act, 2017, by the Finance (No. 2) Act, 2024, has redressed their grievance. They argued that their case falls squarely within the ambit of this newly inserted provision, as their invoices/debit notes for FY 2018-2019 were submitted before the stipulated date of November 30, 2021. The revenue, represented by the State of Assam and its tax authorities, agreed that the amendment to Section 16(5) of the CGST Act, 2017, addresses the petitioner's grievance.
Sections Cited
Section 16
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THE GAUHATI HIGH COURT (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH) Case No. : WP(C)/2851/2024 ARUNAS SNACK PRODUCT A PARTNERSHIP FIRM HAVING ITS PRINCIPAL PLACE OF BUSINESS AT 1, SURANA INDUSTRIES, GUWAHATI BAIHATA ROAD, JAIGURU, AMINGAON, GUWAHATI- 781031, ASSAM AND IN THE PRESENT PROCEEDINGS REPRESENTED BY ONE OF ITS PARTNERS, SHRI PRATIK KHETAN. VERSUS THE STATE OF ASSAM AND 2 ORS. REPRESENTED BY THE COMMISSIONER AND SECRETARY TO THE GOVERNMENT OF ASSAM, DEPARTMENT OF FINANCE AND TAXATION, ASSAM SECRETARIAT, DISPUR, GUWAHATI- 781006. 2:THE COMMISSIONER OF STATE TAXES ASSAM KAR BHAWAN GANESHGURI
GUWAHATI- 781006. 3:THE DEPUTY COMMISSIONER OF STATE TAX GUWAHATI-B-10 ZONE-B KAR BHAWAN GANESHGURI
GUWAHATI- 781006 For petitioner/appellant(s) : Mr. A. Goyal, Advocate
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For respondent(s) : Mr. B. Gogoi, SC, Taxation
– BEFORE – HON’BLE THE CHIEF JUSTICE MR. VIJAY BISHNOI HON’BLE MR. JUSTICE KAUSHIK GOSWAMI 27.01.2025 (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 has been redressed.
With 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:
“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 filled up to the thirtieth day of November, 2021.”
Admittedly, the petitioner submitted its invoice/debit note pertaining to the financial year 2018-2019 and, that too, prior to 30.11.2021 and, therefore, the case of the petitioner very well comes under the provisions of sub-section (5) of Section 16. The respondent authorities are directed to consider the matter and pass an appropriate order taking into consideration the provision of Sub-Section (5) of Section 16 of the Central Goods and Services Tax Act, 2017, vide Amendment (Finance Act, 2024) dated 16.08.2024. It is also made clear that the respondents shall not take any coercive action
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This writ appeal stands disposed of with the above observations and directions.
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.