Input Tax Credit claims cannot be disallowed solely for filing beyond prescribed period under Section 16(4)

The HC set aside an assessment order that disallowed Input Tax Credit solely based on claims being filed beyond the prescribed period under Section 16(4) of GST Acts. The court directed the assessing authority to re-do the assessment considering relevant amendments, while keeping other aspects of the order undisturbed. The petitioner was granted three weeks to submit objections upon receiving the order and amendment details. The petition was disposed of with these directions.

---

---

Issues:
Challenge to assessment order based on disallowance of Input Tax Credit beyond prescribed period under Section 16(4) of GST Acts. Interpretation of amendment in Section 16(5) inserted by The Finance (No. 2) ACT, 2024. Setting aside of impugned order and direction for re-assessment.

Analysis:
The Writ Petition challenges an assessment order dated 27.02.2022, which disallowed Input Tax Credit due to claims lodged beyond the period specified in Section 16(4) of the GST Acts. The petitioner argues that a recent amendment in Section 16(5) through The Finance (No. 2) ACT, 2024 allows for the credit in certain cases. The amendment permits credit for invoices pertaining to specific financial years if filed by the thirtieth day of November 2021. The petitioner contends that the assessment should be redone in light of this amendment.

The Court notes that previous remands were based on the proposed amendment bill. The respondent agrees to re-assess the petitioner's case considering the Finance (No. 2) ACT, 2024. Consequently, the impugned order dated 27.07.2022 is set aside, but other issues in the order remain undisturbed. The assessing authority is directed to re-assess the case, allowing the petitioner to submit objections within three weeks of receiving the order. Failure to file objections within the stipulated period will result in the revival of the impugned order.

Therefore, the Court disposes of the Writ Petition with the direction for re-assessment. No costs are awarded, and the connected miscellaneous petition is closed.

---