2024 (12) TMI 1507 - HC - GST

Kerala HC grants input tax credit under Section 16(5) after initial denial under Section 16(4) CGST/SGST Acts

The Kerala HC allowed the petitioner's writ petition challenging denial of input tax credit for FY 2018-19 under Section 16(4) of CGST/SGST Acts. The ... Denial of benefit of input tax credit on account of the provisions contained in Sub Section (4) of Section 16 of the CGST/SGST Acts - HELD THAT:- On account of notification of Sub-Section (5) of Section 16 of the CGST/SGST Acts, the petitioner will be entitled to input tax credit, which has been denied to the petitioner by Ext.P1 order, the writ petition will stand disposed of, setting aside Ext.P1 to the extent that it denied input tax credit to the petitioner on account of the provisions of Sub Section (4) of Section 16 of the CGST/SGST Acts and directing the competent authority to pass fresh orders, after taking note of the provisions contained in Section 16(5) of the CGST/SGST Acts and after affording an opportunity of hearing to the petitioner, within a period of three months from the date of receipt of a certified copy of this judgment. Petition disposed off. In the case before the Kerala High Court, presided by Justice Gopinath P., the petitioner challenged the denial of input tax credit for the financial year 2018-19, as per the provisions of Sub-Section (4) of Section 16 of the CGST/SGST Acts, as outlined in Ext.P1 order dated 12.02.2024. The petitioner's counsel argued that with the notification of Sub-Section (5) of Section 16, the petitioner should be entitled to the input tax credit previously denied. The court, after hearing both parties, agreed with the petitioner's assertion and disposed of the writ petition by setting aside the denial in Ext.P1. The court directed the competent authority to issue fresh orders, considering Section 16(5) and providing the petitioner an opportunity for a hearing, within three months from receiving the judgment.