M/S Iti LTD vs. The Union Of INDIA And 6 Ors.

Held

The Court held that the petitioner should avail the special procedure for rectification of order as notified by the Central Government on 08.10.2024. This procedure is applicable to registered persons against whom orders under Section 73 (among others) have been issued confirming demand for wrong availment of input tax credit, but where such input tax credit is now available as per the amended provisions of Section 16(5) or 16(6) of the CGST Act, and no appeal has been filed. The Court directed the petitioner to file an application for rectification within two weeks before the competent authority. The respondents are expected to process and dispose of the matter expeditiously. Furthermore, no coercive action shall be taken against the petitioner until the application is disposed of. The Court also allowed the prayer for manual acceptance of the rectification application due to potential portal issues. The matter was closed and disposed of with these directions.

Facts

The petitioner, M/s ITI Ltd, approached the High Court of Meghalaya challenging a demand for excess availed Input Tax Credit (ITC) for March 2019, issued under Section 73 of the CGST Act and MGST Act. The respondents, including the Union of India and various GST authorities, presented a Notification dated 08.10.2024. This notification introduced a special procedure for rectification of orders concerning wrong availment of ITC, particularly where such ITC is now available under amended provisions of Section 16(5) and 16(6) of the Act, and no appeal has been filed against the original order. The petitioner agreed to avail this special procedure.

Key Issues

1. Whether the petitioner can avail the special procedure for rectification of order notified on 08.10.2024 for the demand of excess availed Input Tax Credit for March 2019, given that an order under Section 73 of the CGST Act has already been issued. Petitioner's Contention: The petitioner, having approached the Court regarding the demand, is amenable to availing the newly introduced special procedure for rectification, as it provides a mechanism to address the issue of ITC availability under the amended provisions of Section 16(5) and 16(6). Revenue's Contention: The respondents submitted the Notification dated 08.10.2024, indicating that it provides a special rectification procedure that the petitioner can utilize to resolve the dispute concerning the wrongly availed ITC, especially in light of amendments to Section 16 of the Act.