2025 (4) TMI 737 - HC - GST

Demand for irregularly availed ITC - petitioner filed their GSTR-3B return for the corresponding months and accordingly availed ITC after the cut-off dates - HELD THAT - Circular dated 15.10.2024 clarifies that sub-section (5) and sub-section (6) of Section 16 of the CGST Act 2017 inserted under Section 16 of the CGST Act 2017 with effect from the 1st day of July 2017 vide Section 118 of the Finance (No. 2) Act 2024 the time limit to avail input tax credit under provisions of sub-section (4) of Section 16 of the CGST Act 2017 has been retrospectively extended in certain specified cases. The learned Deputy Solicitor General of India representing respondent nos. 1 to 6 submits that in view of the notification and the circular above the petitioner is now entitled to the Input Tax Credit that was denied to them by the impugned order. Petition allowed.

Summary

The High Court of Sikkim, presided by Hon'ble Mr. Justice Bhaskar Raj Pradhan, addressed a writ petition concerning the denial of Input Tax Credit (ITC) to the petitioner under the Central Goods & Services Tax Act, 2017 (CGST Act, 2017). The petitioner challenged an impugned order dated 21.03.2024, which raised demands for ITC availed after the statutory deadlines for the Financial Years 2018-19 and 2019-20.Key legal reasoning involved the retrospective application of amendments to Section 16 of the CGST Act, 2017, as clarified by Notification No. 17/2024-Central Tax and Circular No. 237/31/2024-GST. These amendments, effective from 1st July 2017, extended the time limits for availing ITC in specific cases.The Deputy Solicitor General, representing respondent nos. 1 to 6, acknowledged that the petitioner is now entitled to the ITC previously denied. Consequently, the court ordered the quashing of the impugned order, allowing the writ petition.