Input tax credit rejection set aside, with fresh reconsideration required under updated CGST/SGST provisions and M. Trade Links directions.

The rejection of input tax credit under the CGST/SGST Acts was set aside, and the claim was directed to be reconsidered afresh in light of Section 16(5) notified from 27-09-2024 and the directions in paragraph 101 of M. Trade Links. The court expressed no view on the merits of entitlement, leaving the competent authority to pass a fresh order after considering the relevant statutory provisions and circulars. The operative effect was a remand for reconsideration of the credit claim under the updated legal framework.

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Issues: Whether the order denying input tax credit under Sections 16(2)(c) and 16(4) of the CGST/SGST Acts required interference and whether the petitioner's claim had to be reconsidered in the light of Section 16(5) and the directions in M. Trade Links.

Analysis: The order rejecting the claim for input tax credit was set aside. The respondent was directed to pass fresh orders taking note of Section 16(5) of the CGST/SGST Acts, notified with effect from 27-09-2024, and to extend the benefit of the directions contained in paragraph 101 of M. Trade Links. No opinion was expressed on the merits of the petitioner's entitlement, leaving the competent authority to reconsider the claim afresh in accordance with the relevant statutory provisions and circulars.

Conclusion: The petitioner succeeded to the extent of securing setting aside of the impugned order and a fresh consideration of the input tax credit claim.

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