2025 (1) TMI 1132 - HC - GST

Denial of benefit of input tax credit on account of the provisions contained in sub-section (4) of Section 16 of the CGST/SGST Acts - HELD THAT - Having regard to the assertion of the learned counsel appearing for the petitioner that on account of notification of sub-section (5) of Section 16 of the CGST/SGST Acts the petitioner will be entitled to input tax credit which has been denied to the petitioner by Ext.P3 order the writ petition will stand disposed of setting aside Ext.P3 to the extent that it denied input tax credit to the petitioner on account of the provisions of sub-section (4) of Section 16 of the CGST/SGST Acts and directing the competent authority to pass fresh orders after taking note of the provisions contained in Section 16(5) of the CGST/SGST Acts and after affording an opportunity of hearing to the petitioner within a period of three months from the date of receipt of a certified copy of this judgment. Petition disposed off.

Summary

The Kerala High Court, presided over by The Honourable Mr. Justice Gopinath P., addressed a writ petition concerning the denial of input tax credit to the petitioner for the financial year 2018-19. The denial was based on sub-section (4) of Section 16 of the CGST/SGST Acts, as per Ext.P3 order dated 01.03.2024. The petitioner contended that the notification of sub-section (5) of Section 16 now entitles them to the input tax credit previously denied.

The Court, after hearing both parties, concluded that the writ petition should be disposed of by setting aside Ext.P3 to the extent it denied input tax credit based on sub-section (4). The Court directed the competent authority to issue fresh orders considering Section 16(5) and to provide the petitioner an opportunity for a hearing. This process is to be completed within three months from the receipt of the judgment's certified copy.