Trident Infraprojects PVT. LTD. vs. The State Of Assam And 2 Ors

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, by the insertion of sub-section (5) in Section 16. This new sub-section, introduced by the Finance (No. 2) Act, 2024, states that notwithstanding anything contained in sub-section (4), for invoices or debit notes 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 filed up to November 30, 2021. Since the petitioner's invoice/debit note for the financial year 2018-19 was submitted prior to November 30, 2021, it squarely falls under the purview of this new provision. The respondent authorities are directed to consider the matter and pass an appropriate order in light of this provision. The Court also directed that no coercive action be taken against the petitioner pursuant to the order dated 30.12.2023. The ratio decidendi is that legislative amendments can retrospectively validate claims for input tax credit that were previously time-barred under earlier provisions, provided they meet the conditions of the new provision.

Facts

The petitioner, Trident InfrapProjects Pvt. Ltd., filed a writ petition challenging an order dated 30.12.2023 passed by the Assistant Commissioner of State Tax (Respondent No. 3). The dispute pertains to input tax credit for invoices/debit notes related to the financial year 2018-19. The petitioner had submitted these documents prior to November 30, 2021. The State of Assam and its tax authorities are the respondents. The parties have agreed that an amendment to the CGST Act, 2017, has addressed the grievance raised by the petitioner.

Key Issues

1. Whether the petitioner is entitled to take input tax credit for invoices/debit notes pertaining to the Financial Year 2018-19, filed up to November 30, 2021, in light of the newly inserted sub-section (5) to Section 16 of the CGST Act, 2017. Petitioner's contention: The petitioner argued that its claim for input tax credit for the financial year 2018-19, submitted prior to November 30, 2021, is now covered by the newly inserted sub-section (5) of Section 16 of the CGST Act, 2017, thereby redressing its grievance. Revenue's contention: The revenue authorities agreed with the petitioner that the amendment to Section 16 of the CGST Act, 2017, specifically the insertion of sub-section (5), resolves the issue raised in the writ petition.