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of <h1>Late-filed GST returns and input tax credit claims for May 2018-March 2019; ITC allowed u/s16(5) override.</h1> Denial of input tax credit (ITC) on the ground that returns for May 2018-March 2019 were filed beyond the time limit in s.16(4) CGST Act was challenged on ... Declination of input tax credit claimed by the petitioner - rejection of claim on the ground that the petitioner failed to submit the returns pertaining to the months of May 2018 - March 2019 within the period stipulated under Section 16(4) of the CGST Act - entitlement to get the input tax credit, in view of the fact that the petitioner had submitted the returns pertaining to the relevant period before the cut off date contemplated under Section 16(5) of the Act - HELD THAT:- The claim now raised by the petitioner (regarding submission of returns before cut-off date) is based on a statutory provision that was introduced later, and it specifically provides for input tax credit, subject to the condition that the returns are filed before the 30th day of November, 2021. Apart from the fact that the returns are to be filed within the said cut off date, no other conditions are imposed in Section 16(5), and it is also a relevant aspect to notice that Section 16(5) starts with the wording “notwithstanding anything contained in Subsection 4.” This would indicate that, once the tax payer submits the return within the period stipulated in Section 16(5), the time limit contemplated under Section 16(4) of the CGST loses its significance. - Therefore, this being a separate statutory provision subsequently introduced, it amounts to a fresh cause of action for the petitioner to claim the relief sought in this writ petition. The fact that the petitioner had earlier approached this Court challenging Section 16(4) of the CGST Act and got an adverse order, cannot be a reason not to entertain this writ petition. In such circumstances the petitioner is entitled to the benefit of Section 16(5), and hence an interference is required - Petition disposed off. The petitioner, a registered taxpayer under the CGST/KGST Act, 2017, challenged an assessment order for 2018-19 declining input tax credit (ITC) on the ground that returns for May 2018-March 2019 were not filed within the time limit under Section 16(4) of the CGST Act. The petitioner relied on subsequently introduced Section 16(5), asserting entitlement to ITC because the returns were filed before the statutory cut-off date specified therein (30 November 2021). The respondents argued the petition was barred because the petitioner had earlier litigated the validity of Section 16(4) and suffered dismissal. The Court rejected this objection, holding the claim under Section 16(5) arose from 'a separate statutory provision subsequently introduced,' constituting a 'fresh cause of action.' Emphasis was placed on Section 16(5) beginning with 'notwithstanding anything contained in Subsection 4,' indicating that compliance with Section 16(5) renders the Section 16(4) time limit insignificant for such cases, and 'no other conditions are imposed in Section 16(5)' beyond filing by the cut-off date. The assessment order was quashed, and the matter remanded for fresh consideration after hearing, with direction to grant Section 16(5) benefit if otherwise eligible.
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