2024 (11) TMI 1430 - HC - GST

Disallowance of Input Tax Credit only on the ground that the claims have been lodged beyond the period prescribed under Section 16(4) of the GST Acts - HELD THAT - The impugned order passed by the respondent dated 27.07.2024 is set aside. The learned assessing/adjudicating authority/respondent would re-do the assessment by taking into account the amendment referred supra. The petitioner may submit their objection by way of reply within a period of three (3) weeks from the date of receipt of a copy of this order along with the amendment and other details. If any such reply is filed the same shall be considered and orders shall be passed after affording reasonable opportunity of personal hearing to the petitioner. In respect of other issues if any the impugned order shall remain undisturbed. Petition disposed off.

Summary

The issues presented and considered in the judgment are as follows:1. Whether the Input Tax Credit was disallowed based on claims lodged beyond the prescribed period under Section 16(4) of the GST Acts.2. The impact of the amendment brought into the GST Acts, specifically Section 16(5) inserted via Section 118 of the Finance (No. 2) Act, 2024.Issue-Wise Detailed Analysis:Issue 1: Input Tax Credit Disallowance- Relevant legal framework: Section 16(4) of the GST Acts- Court's interpretation and reasoning: The petitioner challenged the disallowance of Input Tax Credit based on late claims under Section 16(4) of the GST Acts.- Key evidence and findings: The impugned order disallowed the credit on this ground.- Application of law to facts: The Court considered the petitioner's argument in light of the subsequent amendment.- Treatment of competing arguments: The respondent agreed to re-do the assessment in light of the amendment.- Conclusions: The impugned order disallowing the Input Tax Credit was set aside, and the assessment was to be redone considering the amendment.Issue 2: Impact of Amendment- Relevant legal framework: Section 16(5) inserted via Section 118 of the Finance (No. 2) Act, 2024- Court's interpretation and reasoning: The Court considered the impact of the amendment on the assessment in question.- Key evidence and findings: The amendment allowed for the Input Tax Credit in certain cases.- Application of law to facts: The Court directed the respondent to re-do the assessment in line with the amendment.- Treatment of competing arguments: The respondent agreed to consider the amendment in the reassessment.- Conclusions: The assessment was to be redone considering the amendment, and the petitioner was given an opportunity to submit objections.Significant Holdings:- The Court set aside the impugned order disallowing the Input Tax Credit and directed the reassessment to consider the amendment.- The petitioner was given the opportunity to submit objections within a specified timeframe.In conclusion, the High Court's judgment in this case revolved around the disallowance of Input Tax Credit and the subsequent amendment impacting the assessment. The Court directed the reassessment to consider the amendment and allowed the petitioner to submit objections within a specified timeframe.