Input tax credit dispute redirected to departmental rectification after CGST amendment notification, with writ relief declined

A writ petition challenging denial of input tax credit was not entertained because the petitioner had an available departmental rectification remedy after the relevant amendment to section 16 of the CGST Act was notified. The Court noted that no appeal had been filed, the departmental circular on the rectification route was issued after the writ was instituted, and time still remained to invoke the statutory procedure. The petitioner was therefore directed to pursue rectification under the departmental mechanism, leaving the substantive tax dispute unresolved in writ proceedings.

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Issues: Whether the writ petition should be entertained when the petitioner was required to seek rectification under the departmental procedure after notification of the relevant amendment.

Analysis: The petitioner's grievance concerned denial of input tax credit on the footing that the amendment to section 16 of the Central Goods and Services Tax Act, 2017 had not been notified when the impugned order was passed. The revenue pointed to the departmental circular and the rectification procedure under section 148 of the Central Goods and Services Tax Act, 2017. The Court noted that the writ petition had been filed without preferring an appeal, that the circular had been issued after institution of the writ petition, and that time remained available to invoke the rectification mechanism.

Conclusion: The writ petition was not entertained on merits and the petitioner was directed to pursue rectification under the departmental procedure.

Final Conclusion: The matter was disposed of by directing the petitioner to avail the statutory departmental remedy, leaving the substantive tax dispute unresolved in writ proceedings.

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