The Commissioner Of Commercial Taxes vs. Tvl. Kavin Hp Gas Gramin Vitrak
Original PDF →Facts
The respondent, Tvl.Kavin Hp Gas Gramin Vitrak, was permitted by the Writ Court to file manual returns for claiming Input Tax Credit (ITC) on outward supplies without paying taxes. The Writ Court also directed the appellants, the Commissioner of Commercial Taxes and the Deputy State Tax Officer, to accept these belated returns and allow the ITC claim. The appellants filed a Writ Appeal against this order. During the pendency of the appeal, the Department of Revenue, Ministry of Finance, Government of India, issued a Circular dated 15.10.2024 clarifying that the respondent would be entitled to claim ITC on outward supplies without paying taxes. However, the appellants contended that the returns must be uploaded on the GST web portal as per the Circular, and thus, the Writ Court's direction to allow manual filing needed intervention.
Held
The Court held that in light of the Circular dated 15.10.2024, no interference is required with the order passed by the Writ Court regarding the entitlement to claim ITC on outward supplies without paying taxes. The Circular clarifies that the respondent is indeed entitled to claim ITC on outward supply/sales without paying taxes. However, the Court modified the operative part of the Writ Court's order concerning the method of filing. The respondent was granted liberty to upload the returns on the GST portal for claiming ITC on outward supplies without paying taxes. Upon such uploading, the appellants were directed to accept the uploaded returns and allow the claim of ITC, provided the respondent is otherwise eligible. The issue of whether manual filing was permissible was implicitly resolved by directing online uploading as per the Circular.
Key Issues
1. Whether the respondent is entitled to claim Input Tax Credit (ITC) on outward supplies without paying taxes, considering the provisions of sub-sections (5) and (6) of Section 16 of the Central Goods and Services Tax Act, 2017? 2. Whether the respondent should be permitted to file manual returns for claiming ITC, or if the returns must be uploaded on the GST web portal? Contentions of the Appellants (Revenue/State): The appellants, represented by the Special Government Pleader, fairly submitted that a Circular dated 15.10.2024 clarified that the respondent is entitled to claim ITC on outward supplies without paying taxes. However, they argued that as per this Circular, the returns must be uploaded on the GST web portal. Therefore, the Writ Court's observation permitting manual filing of returns alone requires intervention. Contentions of the Respondent (Petitioner/Appellant): The respondent's contentions are not explicitly recorded in the judgment, but their initial writ petition sought permission to file manual returns and claim ITC, which was granted by the Writ Court.
Sections Cited
Section 16(5), Section 16(6)
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
JUDGMENT (Judgment of the Court was made by M.S.RAMESH, J.) By consent of both the counsels, the writ appeal itself is taken up for final disposal.
The present Writ Appeal is directed against the order passed by the Writ Court dated 24.11.2023 made in W.P(MD)No.7173 of 2023. 3. By the impugned order, the respondent herein was permitted to file manual returns claiming the ITC on the outward supply / sales without paying taxes, with a further direction to the appellants to accept the belated returns and allow the claim of ITC.
The learned Special Government Pleader appearing for the appellants fairly submitted that after the writ appeal was filed, the Department of Revenue, Ministry of Finance, Government of India, had issued a Circular dated 15.10.2024 clarifying the issues regarding the implementation of the provisions namely, sub-sections (5) and (6) of Section 16 of the Central Goods and Services Tax Act, 2017, by which, the respondent would be entitled to Page No.2 of 4 https://www.mhc.tn.gov.in/judis claim the ITC on the outward supply / sales without paying taxes. However, he also added that as per the said Circular, the returns requires to be uploaded in the GST web portal and therefore, the observations in the writ petition, permitting the respondent / writ petitioner to file manual returns alone requires intervention.
In the light of the Circular dated 15.10.2024, no interference is required to the order passed in the writ petition. However, the respondent herein is granted liberty to upload the returns in the GST portal for the claim of ITC on the outward supply / sales without paying taxes and on uploading the same, the appellants herein shall accept the uploaded returns and allow the claim of ITC, if they are otherwise eligible.
The Writ Appeal stands disposed of accordingly. No costs. Consequently, connected miscellaneous petition is closed. (M.S.R, J.) (A.D.M.C, J.) Index : Yes / No 21.01.2025 Neutral Citation : Yes / No RR Page No.3 of 4 https://www.mhc.tn.gov.in/judis M.S.RAMESH, J. and A.D.MARIA CLETE, J. RR To 1. The Commissioner of Commercial Taxes, Office of the Principal and Special Commissioner of Commercial Taxes, Ezhilagam, Chepauk, Chennai 600 005. 2. The Deputy State Tax Officer-1, Office of State Tax Officer, Melur Assessment Circle, CT Buildings Dr.Thangaraj Salai, Madurai - 625020. JUDGMENT MADE IN DATED : 21.01.2025 Page No.4 of 4 https://www.mhc.tn.gov.in/judis
Reproduced from the public record of the Madras High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.