M/S Aryan Enterprises Through Its Proprietor Anuj Kumar Jha vs. Union Of INDIA Through 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 October 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 given retrospective effect from 01.07.2017. The reasoning is that this provision allows for ITC even in cases of delayed return filing, aligning with the legislative intent to permit such credits. Consequently, the Court directed the respondents to allow the petitioner to take the eligible ITC. Furthermore, the Court ordered that the interest and penalty collected from the petitioner shall be refunded. The refund is to be paid with 6% per annum interest, calculated from the date of collection until the date of repayment. The writ petition was disposed of in light of this order.
Facts
The petitioner, M/s. Aryan Enterprises, filed a writ petition before the Jharkhand High Court challenging an action by the respondents (Union of India, CBIC, Deputy Commissioner of State Tax, and State Tax Officer). The specific tax period in dispute is October 2018 to March 2019. The petitioner sought to claim Input Tax Credit (ITC) for delayed returns filed during this period. The respondents had levied interest and penalty on the petitioner. The High Court noted that the issue raised was covered by a previous order passed in W.P.(T) No. 14 of 2024 on 12.11.2024.
Key Issues
1. Whether the petitioner is entitled to claim Input Tax Credit (ITC) in respect of delayed returns filed for the Financial Year October 2018 to March 2019, considering the insertion of Clause (5) of Section 16 by the Finance (No.2) Act, 2024, with effect from 01.07.2017? Petitioner's Contention: The petitioner argued for the right to claim ITC on delayed returns, relying on the retrospective effect of Clause (5) of Section 16 of the CGST Act, as inserted by the Finance (No.2) Act, 2024. They sought the allowance of ITC and the refund of interest and penalty levied. Revenue's Contention: The judgment does not record any specific arguments from the respondents regarding the petitioner's entitlement to ITC or the validity of the interest and penalty levied. The respondents' stance is implicitly addressed by the court's final decision.
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. 15 of 2024 ----- M/s. Aryan Enterprises, a proprietorship concern, having its place of business at 1st Floor, J B 16, NA, City Centre Sector IV, Bokaro Steel City, Bokaro, Jharkhand, through its Proprietor, Anuj Kumar Jha, son of Sudarshan Jha, aged about 54 years, resident of Flat No. F-707, Block-F, Near Sai Mandir, Malti Luxuria City, Bokaro Steel City, P.O. & P.S. Chas Bokaro, District-Bokaro, 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, Bokaro Circle, Bokaro, having its office at 5/8, City Centre, Sector-IV, Bokaro Steel City, P.O. & P.S.- Bokaro, District-Bokaro, Jharkhand
The State Tax Officer, Bokaro Circle, Circle, having its office at Stadium Road, Sector-IV, Bo
The judgment continues below.
Read the full judgment
A free account opens 10 full GST judgments a month (one account works on both bharattax.net and this site). Re-reading one you have already opened does not count again.
The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.
Reproduced from the public record of the Jharkhand High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.