Amended input tax credit provision restored carry forward entitlement for the relevant tax months under Jharkhand VAT law.

Amended Explanation (1) to Section 19 of the Jharkhand Value Added Tax Act, 2005 allowed the assessee to carry forward input tax credit despite the earlier restriction under the unamended provision. The amendment, notified on 04.11.2016 with effect from 07.05.2011, was applied to the relevant return period, so the bar on carry forward could not continue to operate for January 2015 to February 2015 and subsequent months. The assessing authority was left free to complete assessment in accordance with law.

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Issues: Whether the petitioner was entitled to carry forward input tax credit for the relevant months under the amended Explanation (1) to Section 19 of the Jharkhand Value Added Tax Act, 2005.

Analysis: The petitioner had been prevented from carrying forward input tax credit because of the original Explanation (1) to Section 19. The Explanation was subsequently amended by notification dated 04.11.2016 with effect from 07.05.2011, and the amended position was applied to the petitioner's return period. In view of the amendment, the restriction on carry forward could not continue to operate against the petitioner for the months in question, and the assessing authority was left free to complete assessment in accordance with law.

Conclusion: The petitioner was entitled to carry forward the input tax credit for January 2015 to February 2015 and subsequent months in terms of the amended Explanation (1) to Section 19.

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