Amended GST regime and circulars led the HC to set aside rejection orders and remand the claims for fresh reply.

Delayed filing of GST returns and input tax credit claims led to rejection of the petitioner's claims, but the amended statutory regime under Section 118 of the Finance (No. 2) Act, 2024 and subsequent circulars were applied to extend relief. The HC followed the approach adopted in similar matters and, with no objection from the State, set aside the impugned orders and restored the matter to the show cause notice stage. The petitioner was allowed to file a fresh reply, and the claims were directed to be reconsidered in accordance with law.

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Issues: Whether the impugned orders rejecting the petitioner's GST claims were liable to be set aside and the matter relegated to the stage of show cause notice in view of the amended statutory regime and subsequent circulars.

Analysis: The petitioner was found to have delayed filing GST returns and claiming input tax credit for the relevant financial year. In view of the amendment brought by Section 118 of the Finance (No. 2) Act, 2024 and the subsequent circulars, the Court considered it appropriate to extend the benefit of the amended position. Since similar matters had already been remanded to the show cause notice stage and the State raised no objection, the impugned orders were set aside and the petitioner was afforded an opportunity to respond to the notice afresh.

Conclusion: The petitioner was permitted to reply to the show cause notice, and the matter was sent back for fresh consideration in accordance with law.

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