GST adjudication reopened for fresh notice after amended input tax credit provisions under Section 16(5) were brought into effect.

Delay in filing GSTR-3B was considered in light of the amendment inserting Section 16(5) into the CGST/KGST regime by Section 118 of the Finance Act, 2024. The Court held that the petitioner should be given an opportunity to respond afresh and that the amended provisions had to be applied before further action. The impugned GST adjudication and demand orders were therefore set aside, and the proceedings were remitted to the stage of show cause notice for fresh consideration in accordance with law.

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Issues: Whether the impugned GST adjudication and demand orders were liable to be set aside and the proceedings remitted to the stage of show cause notice for consideration of the amended provisions.

Analysis: The dispute arose from delay in filing GSTR-3B for the relevant financial year and the effect of the amendment brought in by Section 118 of the Finance Act, 2024, inserting Section 16(5) into the CGST/KGST regime. In view of the request for an opportunity to respond afresh and the concession from the Revenue, the proceedings were required to be restored to the show cause notice stage so that the amended provisions could be given effect and the petitioner could be heard before further action.

Conclusion: The impugned orders were set aside and the matter was remitted to the stage of show cause notice for fresh consideration in accordance with law.

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