M/S A2Z Infra Engineering LTD Through Its Authorised Signatory Manikant Kumar vs. The Union Of INDIA Department Of Revenue Ministry Of Finance Government Of INDIA Th Its Secretary
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 2019-20. 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 reasoned that the issue was covered by a previous judgment of the High Court. Consequently, the Court directed the respondents to allow the petitioner to claim the ITC. Furthermore, any interest and penalty levied on the petitioner by the respondents for the delayed returns shall be refunded. The 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. The orders dated 25.04.2023 passed by the Appellant Authority were also set aside.
Facts
The petitioner, M/s A2Z Infra Engineering Ltd., filed a writ petition before the Jharkhand High Court challenging an order passed by the Additional Commissioner of State Tax (Appeals), Dhanbad Division. The dispute pertains to the petitioner's claim for Input Tax Credit (ITC) for delayed returns filed for the Financial Year 2019-20. The revenue authorities had levied interest and penalty on the petitioner. The High Court noted that the issue raised in the present writ petition was covered by a previous judgment of the same court.
Key Issues
1. Whether the petitioner is entitled to claim Input Tax Credit (ITC) in respect of delayed returns filed for the Financial Year 2019-20, considering the insertion of Clause (5) of Section 16 of the CGST Act by the Finance (No.2) Act, 2024, with effect from 01.07.2017? The petitioner argued that the newly inserted Clause (5) of Section 16 of the CGST Act, which allows for ITC in cases of delayed returns, should be applied retrospectively from 01.07.2017, thereby entitling them to claim ITC for the Financial Year 2019-20. The revenue authorities' position was not explicitly recorded in the judgment, but their action of levying interest and penalty implies a denial of ITC for delayed returns.
Sections Cited
Section 16
AI-generated summary — verify with the full judgment below
2025:JHHC:11388-DB
IN THE HIGH COURT OF JHARKHAND AT RANCHI
W.P. (T) No.6149 of 2023 M/s A2Z Infra Engineering Ltd., a company registered under the Companies Act, 1956/2013 having its office at Hariharpur, Gomoh, P.O. & P.S.-Gomoh, District-Dhanbad through its Authorised Signatory, namely, Manikant Kumar, S/o Shailendra Kishor Saran, R/o M72 First Floor, Near Childrens Clinic, Premnagar, Uttam Nagar, West Delhi. ... Petitioner
Versus
The Union of India, Department of Revenue, Ministry of Finance, Government of India, New Delhi through its Secretary.
The Union of India, Department of Revenue, Ministry of Finance, Government of India, New Delhi, through its Under Secretary.
Goods and Services Tax Council, through its Chairperson, Ministry of Finance, Government of India, New Delhi.
The Central Board of Indirect Taxes & Customs, Department of Revenue, Ministry of Finance, Government of India, New Delhi, through its Secretary
Goods and Services Tax Network (GSTN), through its Chief Executive Officer, East Wing, New Delhi.
Commissioner/Joint Secretary of Central Board of Indirect Taxes & Cust
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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.