Tvl.Raja Computer vs. The Deputy Commercial Tax Officer (St) -1

Held

The Court held that the impugned order dated 26.04.2024, which rejected the claim for Input Tax Credit on the sole ground of belated filing of GSTR-3B returns, could not be sustained. The Court noted that the Show Cause Notice itself indicated that the returns were filed within the extended time limit specified in Section 16(5) of the applicable GST statutes. Since the basis for rejecting the Input Tax Credit was found to be factually incorrect, the order was deemed unsustainable. The Court set aside the impugned order. The ratio decidendi is that if the returns are filed within the extended time limit, the Input Tax Credit cannot be denied on the ground of belated filing. The writ petition was disposed of by setting aside the impugned order.

Facts

The petitioner, Tvl. Raja Computer, filed a writ petition challenging an order dated 26.04.2024 passed by the Deputy Commercial Tax Officer (ST)-1, Tirunelveli. The impugned order, issued under Section 73 of the CGST Act, pertains to the tax period 2018-2019. The petitioner's primary contention is that the GSTR-3B returns were filed within the extended time limit as stipulated by Section 16(5) of the applicable GST statutes. The respondent, represented by the Special Government Pleader, acknowledged that the GSTR-3B returns were indeed filed within the extended time limit.

Key Issues

1. Whether the impugned order dated 26.04.2024, which rejected the claim for Input Tax Credit on the ground of belated filing of GSTR-3B returns, is sustainable in light of the returns being filed within the extended time limit specified under Section 16(5) of the applicable GST statutes? Petitioner's Contention: The petitioner argued that all GSTR-3B returns were filed within the extended time limit provided under Section 16(5) of the applicable GST statutes, as evidenced by the Show Cause Notice itself. Therefore, the rejection of Input Tax Credit based on belated filing is erroneous. Respondent's Contention: The respondent, through the Special Government Pleader, concurred with the petitioner's submission that the GSTR-3B returns were filed within the extended time limit.