2024 (12) TMI 1502 - 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. P1 order, the writ petition will stand disposed of, setting aside Ext. P1 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

In the case before the Kerala High Court, presided over by Honourable Mr. Justice Gopinath P., the petitioner challenged the denial of input tax credit for the financial year 2019-2020, as per Ext. P1 order dated 22.08.2024, based on sub-section (4) of Section 16 of the CGST/SGST Acts. The petitioner's counsel argued that the notification of Sub-Section (5) of Section 16 now entitles the petitioner to the input tax credit previously denied. After hearing arguments from both sides, the court set aside Ext. P1 to the extent it denied the input tax credit due to Sub-Section (4) and directed the competent authority to issue fresh orders considering Section 16 (5). The court also allowed the petitioner to appeal other issues in Ext. P1 before the First Appellate Authority. The writ petition was disposed of accordingly.