Extended time limit for Input Tax Credit defeats earlier limitation-based demand under the CGST amendment.

Amended Section 16 of the CGST Act, by extending the time limit for availing Input Tax Credit for specified financial years up to 30 November 2021, displaced the objection based on the earlier time bar under Section 16(4) to that extent. The petitioner was therefore entitled to Input Tax Credit for the relevant period, and the demand founded on the expired limitation could not be sustained in full. The Order-in-Original was set aside, while the petitioner accepted liability to pay the excess utilised amount and interest within 30 days.

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Issues: Whether the petitioner was entitled to avail Input Tax Credit for the relevant financial year in view of the amended provisions extending the time limit, and whether the demand confirmed under the Order-in-Original could be sustained.

Analysis: The amendment to Section 16 of the CGST Act introduced sub-sections (5) and (6), which extended the period for availing Input Tax Credit for specified financial years up to 30 November 2021. In view of the amendment, the challenge to the demand based on Section 16(4) no longer survived to that extent, and the petitioner was held entitled to the benefit of Input Tax Credit for the relevant period. The respondents' request for payment of the excess utilised amount and interest was accepted by the petitioner.

Conclusion: The petitioner was entitled to the benefit of Input Tax Credit for the relevant period, the Order-in-Original was set aside, and the petitioner was directed to pay the excess utilised amount and interest within 30 days.

Final Conclusion: The writ petition was disposed of by granting partial relief to the petitioner while preserving the limited monetary liability accepted by the parties.

Ratio Decidendi: Where a statutory amendment expressly extends the time limit for availing Input Tax Credit for specified periods, a demand founded solely on the earlier time bar cannot be sustained to that extent.

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