Extended time limit for input tax credit prevented Section 16(4) bar, so the GST demand order was quashed.

Amendments extending the time to claim input tax credit under the West Bengal GST framework were treated as overriding the earlier filing deadline for the relevant financial years. Because the returns were filed within the extended period, the bar under Section 16(4) did not apply, and the reversal of input tax credit with interest under Section 50 was not sustainable. The order passed under Section 73 could therefore not be enforced and was set aside and quashed in favour of the assessee.

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Issues: Whether the order passed under Section 73 of the West Bengal Goods and Services Tax Act, 2017 could survive after the legislative amendment inserting Section 16(5) and extending the time for availing input tax credit for the relevant financial years.

Analysis: The returns were filed beyond the original due date under Section 39, attracting the restriction under Section 16(4) and consequent reversal of input tax credit with interest under Section 50. The amended provision introduced by the later notifications was treated as having an overriding effect and as extending the permissible time limit for the concerned financial years. Since the returns fell within the extended period, the statutory bar under Section 16(4) was held not to apply.

Conclusion: The impugned order could not be enforced and was set aside and quashed in favour of the assessee.

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