The Commissioner Of Commercial Taxes vs. Tvl Kavin Hp Gas Graminvitrak
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The respondent, Tvl.Kavin Hp Gas Gramin Vitrak, filed a writ petition seeking permission to file manual returns for claiming Input Tax Credit (ITC) on outward supplies without paying taxes. The Writ Court, by an order dated 24.11.2023 in W.P(MD)No.7174 of 2023, allowed the respondent to file manual returns and directed the appellants (Commissioner of Commercial Taxes and Deputy State Tax Officer) to accept these belated returns and allow the ITC claim. The appellants filed the present 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.
Held
The Court noted that the Circular dated 15.10.2024 issued by the Department of Revenue, Ministry of Finance, Government of India, clarifies the implementation of sub-sections (5) and (6) of Section 16 of the Central Goods and Services Tax Act, 2017. This Circular confirms that the respondent is entitled to claim ITC on outward supply/sales without paying taxes. However, the Circular also stipulates that returns must be uploaded on the GST web portal. Consequently, the Court found no reason to interfere with the Writ Court's order regarding the entitlement to claim ITC. Nevertheless, it modified the procedural aspect by granting the respondent liberty to upload the returns on the GST portal for claiming ITC. Upon uploading, the appellants are directed to accept the uploaded returns and allow the ITC claim, provided the respondent is otherwise eligible.
Key Issues
1. Whether the respondent is entitled to claim ITC on outward supply/sales without paying taxes, as per the provisions 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? The appellants argued that while the Circular dated 15.10.2024 clarifies that the respondent is entitled to claim ITC on outward supply/sales without paying taxes, it mandates that such returns must be uploaded on the GST web portal. Therefore, the Writ Court's observation permitting manual filing alone requires intervention. The respondent did not present any arguments in the appeal.
Sections Cited
Section 16
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.7174 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 07.01.2025 Neutral Citation : Yes / No bala Page No.3 of 4 https://www.mhc.tn.gov.in/judis M.S.RAMESH, J. and A.D.MARIA CLETE, J. bala 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 : 07.01.2025 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.