M/S Ram Constructions Through Its Proprietor Ram Chandra Saha vs. Union Of INDIA Thro The Secretary Ministry Of Finance Department Of Revenue
Held
The Court held that the petitioner is entitled to take Input Tax Credit (ITC) in respect of delayed returns filed for the Financial Year April 2018 to March 2019. This decision is based on Clause (5) of Section 16 of the CGST Act, which was inserted by the Finance (No.2) Act, 2024, and made effective from 01.07.2017. The Court directed the respondents to allow the petitioner to avail the ITC. Furthermore, the Court ordered that any interest and penalty previously levied and collected from the petitioner by the respondents shall be refunded. This refund is to be accompanied by interest at the rate of 6% per annum, calculated from the date of collection of such amounts until the date of repayment.
Facts
The petitioner, M/s. Ram Constructions, a proprietorship concern, filed a writ petition before the Jharkhand High Court. The core of the dispute revolves around the petitioner's eligibility to claim Input Tax Credit (ITC) for delayed returns filed for the Financial Year April 2018 to March 2019. The respondents, including Union of India, CBIC, Deputy Commissioner of State Tax, and Superintendent CGST & CX, had levied interest and penalty on the petitioner due to these delayed filings. The petitioner sought relief from these charges and the denial of ITC.
Key Issues
1. Whether the petitioner is entitled to claim Input Tax Credit (ITC) for delayed returns filed for the Financial Year April 2018 to March 2019, in light of the provisions of the CGST Act and relevant amendments. Petitioner's Contention: The petitioner argued that they should be allowed to take ITC for the delayed returns. They relied on Clause (5) of Section 16, as inserted by the Finance (No.2) Act, 2024, with effect from 01.07.2017, which they contended provided a basis for this relief. Respondents' Contention: The judgment does not explicitly record arguments made by the respondents. However, their actions in levying interest and penalty and potentially denying ITC indicate their stance against allowing ITC for delayed returns without adherence to prescribed timelines or conditions.
Sections Cited
Section 16
AI-generated summary — verify with the full judgment below
1
IN THE HIGH COURT OF JHARKHAND AT RANCHI W.P.(T) No. 2150 of 2024 ----- M/s. Ram Constructions, a proprietorship concern, having its place of business at Barkiray, Maheshpur, Pakur, Jharkhand, through its Proprietor, Ram Chandra Saha, S/o Lobin Chandra Saha, aged about 43 years, resident Village-Barkiyari, P.O.-Barkiyari & P.S.Maheshpur, District-Pakur, Jharkhand.
… … Petitioner Versus
Union of India, through the Secretary, Ministry of Finance, Department of Revenue, having its office at Room No. 46, North Block, P.O. and P.S. North Block, New Delhi- 110001. 2. The Central Board of Indirect Taxes and Customs, through its Chairman, Ministry of Finance, Department of Revenue, having its office at North Block, P.O. and P.S. North Block, New Delhi-110001. 3. The Deputy Commissioner of State Tax, Deoghar Circle, Deoghar, Jharkhand.
The Superintendent, CGST & CX, Range-Pakur, Division-Deoghar, having its Office at Hanumat Niwas, Shakrugard, P.O. Baluagairah & P.S. Sahibganj, District- Sahibganj, Jharkhand.
… … Respondents ------- CORAM:
HON’BLE THE CHIEF JUSTICE
HON'BLE MR. JUSTICE DEEPAK ROSHAN
The judgment continues below.
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