GST Assessment Order Challenged: Petitioner Granted Opportunity to Submit Objections Under Amended Section 16(5) HC allowed the writ petition challenging GST assessment order. The court directed reassessment under amended Section 16(5), providing petitioner three ...
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GST Assessment Order Challenged: Petitioner Granted Opportunity to Submit Objections Under Amended Section 16(5)
HC allowed the writ petition challenging GST assessment order. The court directed reassessment under amended Section 16(5), providing petitioner three weeks to submit objections. Respondent must withdraw garnishee proceedings related to ITC denial while retaining rights for other demands. Petition disposed of without costs.
Issues: Challenging assessment order disallowing Input Tax Credit under GST Act Section 16(4); Impact of amendment inserting Section 16(5) through Finance Act; Garnishee proceedings initiated post assessment order.
Analysis: The Writ Petition challenges an assessment order disallowing Input Tax Credit (ITC) under the GST Act Section 16(4) for the period 2017-2018. The petitioner argues that an amendment has been made to the GST Acts, inserting Section 16(5) through the Finance Act, allowing ITC for specific financial years until November 30, 2021. The petitioner contends that the assessment should be redone considering this amendment, and garnishee proceedings initiated subsequently should be withdrawn. The respondent agrees to reassess the matter in light of the new amendment and withdraw the garnishee proceedings.
The Court sets aside the impugned assessment order dated January 31, 2024, directing the assessing authority to redo the assessment considering the newly inserted Section 16(5) from the Finance Act. The petitioner is given three weeks to submit objections to the reassessment. Any objections submitted will be reviewed, and a decision will be made after providing a reasonable opportunity for a personal hearing. The impugned order remains undisturbed regarding other issues. The respondent is instructed to withdraw the garnishee proceedings related to the ITC denial under Section 16(4) for the period 2017-2018. However, the respondent is permitted to continue the garnishee proceedings for any other demands covered by the same proceedings.
In conclusion, the Writ Petition is disposed of without costs, and connected miscellaneous petitions are closed.
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