TaxTMI 
TaxTMI 
2023 (10) TMI 924
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....entral Goods and Services Tax Rules, 2017 (hereinafter referred to as the 'CGST Rules, 2017'), has been specifically given up, at this stage. 3. Primary relief being sought by the petitioner is against the order dated 7.4.2021 passed by the Deputy Commissioner, Sector-2, Commercial/State Tax, Gautam Buddh Nagar. By that order, passed under Section 74 (9) of the CGST Act, 2017 (hereinafter referred to as 'the Act'), the said authority has opined that the petitioner had availed/utilised excess Input Tax Credit (ITC in short), Rs. 110,06,90,100.31, for the months of February 2020 to August 2020. Construing the same to be a violation of Rule 36(4) of the CGST Rules, 2017, it has been directed to be reversed and added to the output tax liability of the petitioner, with consequent interest obligation. Also, an equal amount of penalty referable to Section 74 of the Central Goods and Service Tax Rules, 2017 has been imposed. Thus, total demand of Rs. 235.52 crores had been created - inclusive of interest @ Rs. 15,40,00,000/-. Against that demand, the petitioner had self-deposited Rs. 11,00,69,010/- (provisionally, pending this writ petition) being 10% of the disputed deman....
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....ruary 2020 to August 2020. The revenue claims otherwise. Arising from such difference of perception, a common tabular chart (for the period under dispute), reflecting the Tax Invoice figures as per GSTR-3B (filed by the petitioner) and GSTR-2A (generated upon details furnished by the suppliers), as also the computation of ITC as per Rule 36(4) of CGST Rules, 2017, and the now disputed mismatch thereof, has been prepared by the revenue authorities. It is a part of the impugned order itself. It reads as below: MONTH As per GSTR-3B As per GSTR-2A As per GSTR-2A+10% MISMATCH Feb-2020 77,04,29,644.86 80,60,29,310.96 88,66,32,242.06 11,62,02,597.20 March-2020 83,20,71,671.18 78,87,34,471.17 86,76,07,918.29 3,55,36,247.11 April-2020 1,70,636.19 23,18,238.63 25,50,062.49 23,79,426.30 May-2020 94,57,01,388.49 1,05,48,33,578.57 1,16,03,16,936.43 21,46,15,547.94 June-2020 1,05,44,63,303.00 24,71,30,463.17 27,18,43,509.49 -78,26,19,793.51 July-2020 1,69,88,53,146.47 2,45,09,73,609.99 2,69,60,70,970.99 99,72,17,824.52 Augt-2020 1,48,73,31,355.54 1,49,12,18,613.52 1,64,03,40,474.87 15,30,09,119.33 Sept-2020 2,14,60,19,179.16 28,08,98,281.79 30,89,8....
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....les read with its first proviso. Insofar as the Rule referred to above prescribed a cumulative period only, it was never made open to the administrative authorities to override that piece of delegated legislation to provide for a month-to-month reconciliation, by engaging and reading the words "on the due date of filing of the returns" (used in the impugned Circular), as the date when reconciliation was to be made. Alternatively, it has been submitted, since the Circular was issued prior to introduction of the first proviso to Rule 36(4), it therefore lost its contrary intent and consequentially its enforceability-to the binding force of law created upon incorporation of the first proviso to Rule 36(4) w.e.f. 03.04.2020. 13. To bolster his submission, the learned Senior Counsel has laid emphasis on the provisions of the Act to establish that the ITC is the backbone of the GST regime. Entitlement thereto arises under Section 16 of the Act by way of a statutory right. The same cannot be defeated either by administrative instructions or by construing the law in any other manner. He has also referred to Circular No. 123/42/219-GST dated 11.11.2019 (paragraph-3), Circular No. 59/33/201....
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.... on the ability of the taxpayer to avail ITC on self-assessment. That would remain governed by the provisions of Section 16 of the Act. 18. Thus, both in view of the clear language of the law that must prevail over the Circular/Administrative Instruction dated 11.11.2019, as also on the test of general principle that arises under the GST regime, the construction made by the respondent-revenue authorities is wholly unfounded in law. 19. The fact that the revenue authorities chose to disregard that law and recovered the entire amount while the matter was being seriously contested before this Court, is described to have given rise to the entitlement of full restitution together with interest at the market rate, on such restitution. 20. In reply, the learned Additional Advocate General has passionately urged that there is no error in the impugned order and/or the Circular. In the first place, GSTR-3B is the monthly return prescribed to be filed by 20th March 2020. That requirement of the law was not waived or relaxed, to any extent. Also, the GSTR-2A pertaining to the present petitioner would have been auto populated on the strength of the details fed by the individual suppliers on ....
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....y of a pari materia provision (under Section 43 as then existed), a similar addition was to be made at the hands of the supplier. 22. Referring to the impugned order, primarily the chart extracted above, it has been submitted, the revenue authorities have given an exact reconciliation to the petitioner as entitled - for each month i.e., February, March, April, May, June, July, August, and September 2020. The amounts found mentioned in the monthly returns on Form GSTR- 3B and the amounts found recorded in the GSTR-2A for each of those months, have been exactly mentioned. There is no dispute raised by the petitioner as to the correctness of any of those amounts. To that, 10% additional benefit has been computed in the fourth column of that chart - being the ITC entitlement available at the relevant time. It is in accordance with Rule 36(4) of the Rules. Having computed those figures, the revenue authorities found, in certain months the petitioner had not committed any violation since it had availed ITC less than the amount of ITC available. However, for the months of June 2020 and September 2020, the petitioner had over utilized ITC to the extent of Rs. 78,26,19,793.51 and Rs. 1,83,....
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....e above Circular had been issued. According to him, Notification No. 30 of 2020 only sought to add proviso to Rule 36(4) with effect from 31.3.2020. Similarly, Notification No. 31 of 2020 only provided for variable interest in the event of late filing of returns. Notification no. 32 of 2020 only provided for waiver of the late fee. Similarly, Notification no.33 of 2020 only provided for a late fee on late filing of GSTR-I. In the same light, Notification no.35 of 2020 provided benefit of extension of time limits, to complete or comply any action by any authority etc., that may otherwise have been required to be completed or complied between 30.3.2020 to 29.6.2020. That timeline was extended up to 30.06.2020. However, while issuing such beneficial notifications and while clarifying that law, no provision was made to extend the date of filing of form GSTR-3B. 27. Based on that stand, it has been doggedly asserted that the ITC credit remained frozen between the 11th and the 20th of the following month, for the transactions performed in the month immediately preceding that. Second, the situation is covered by Circular No. 136 dated 03.04.2020 and no challenge has been raised thereto. ....
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....18), dt. 30.8.2018, the tax charged in respect of such supply has been actually paid to the Government, either in cash or through utilisation of input tax credit admissible in respect of the said supply; and (d) he has furnished the return under section 39: PROVIDED that where the goods against an invoice are received in lots or instalments, the registered person shall be entitled to take credit upon receipt of the last lot or instalment: PROVIDED FURTHER that where a recipient fails to pay to the supplier of goods or services or both, other than the supplies on which tax is payable on reverse charge basis, the amount towards the value of supply along with tax payable thereon within a period of one hundred and eighty days from the date of issue of invoice by the supplier, an amount equal to the input tax credit availed by the recipient shall be added to his output tax liability, along with interest thereon, in such manner as may be prescribed: PROVIDED ALSO that the recipient shall be entitled to avail of the credit of input tax on payment made by him of the amount towards the value of supply of goods or services or both along with tax payable thereon. (3) Where the regis....
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....furnishing such details for such class of taxable persons as may be specified therein: PROVIDED also that any extension of time limit notified by the Commissioner of State tax or Commissioner of Union territory tax shall be deemed to be notified by the Commissioner. (2) Every registered person who has been communicated the details under sub- section (3) of section 38 or the details pertaining to inward supplies of Input Service Distributor under sub-section (4) of section 38, shall either accept or reject the details so communicated, on or before the seventeenth day, but not before the fifteenth day, of the month succeeding the tax period and the details furnished by him under sub-section (1) shall stand amended accordingly. (3) Any registered person, who has furnished the details under sub-section (1) for any tax period and which have remained unmatched under section 42 or section 43, shall, upon discovery of any error or omission therein, rectify such error or omission in such manner as may be prescribed, and shall pay the tax and interest, if any, in case there is a short payment of tax on account of such error or omission, in the return to be furnished for such tax period....
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....r the tenth day but on or before the fifteenth day of the month succeeding the tax period in such form and manner as may be prescribed: Provided that the Commissioner may, for reasons to be recorded in writing, by notification, extend the time limit for furnishing such details for such class of taxable persons as may be specified therein : Provided further that any extension of time limit notified by the Commissioner of State tax or Commissioner of Union territory tax shall be deemed to be notified by the Commissioner. (3) The details of supplies modified, deleted or included by the recipient and furnished under sub-section (2) shall be communicated to the supplier concerned in such manner and within such time as may be prescribed. (4) The details of supplies modified, deleted or included by the recipient in the return furnished under sub-section (2) or subsection (4) of section 39 shall be communicated to the supplier concerned in such manner and within such time as may be prescribed. (5) Any registered person, who has furnished the details under sub-section (2) for any tax period and which have remained unmatched under section 42 or section 43, shall, upon discovery of an....
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.... by him shall be finally accepted and such acceptance shall be communicated, in such manner as may be prescribed, to the recipient. (3) Where the input tax credit claimed by a recipient in respect of an inward supply is in excess of the tax declared by the supplier for the same supply or the outward supply is not declared by the supplier in his valid returns, the discrepancy shall be communicated to both such persons in such manner as may be prescribed. (4) The duplication of claims for reduction in output tax liability shall be communicated to the supplier in such manner as may be prescribed. (5) The amount in respect of which any discrepancy is communicated under sub- section (3) and which is not rectified by the recipient in his valid return for the month in which discrepancy is communicated shall be added to the output tax liability of the supplier, in such manner as may be prescribed, in his return for the month succeeding the month in which the discrepancy is communicated. (6) The amount in respect of any reduction in output tax liability that is found to be on account of duplication of claims shall be added to the output tax ability of the supplier in his return for ....
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....section (3) shall be such as may be prescribed and such procedure may include the maximum amount of the input tax credit which can be so availed, not exceeding twenty per cent of the input tax credit available, on the basis of details furnished by the suppliers under the said subsection. (5) The amount of tax specified in the outward supplies for which the details have been furnished by the supplier under sub-section (3) shall be deemed to be the tax payable by him under the provisions of the Act. (6) The supplier and the recipient of a supply shall be jointly and severally liable to pay tax or to pay the input tax credit availed, as the case may be, in relation to outward supplies for which the details have been furnished under sub-section (3) or sub- section (4) but return thereof has not been furnished. (7) For the purposes of sub-section (6), the recovery shall be made in such manner as may be prescribed and such procedure may provide for non-recovery of an amount of lax or input tax credit wrongly availed not exceeding one thousand rupees. (8) The procedure, safeguards and threshold of the tax amount in relation to outward supplies, the details of which can be furnishe....
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....ave not been furnished by the suppliers under sub-section (1) of section 37 in FORM GSTR-1 or using the invoice furnishing facility, shall not exceed 10 per cent of the eligible credit available in respect of invoices or debit notes the details of which have been furnished by the suppliers under sub-section (1) of section 37 in FORM GSTR-1 or using the invoice furnishing facility: PROVIDED that the said condition shall apply cumulatively for the period February, March. April, May, June, July and August, 2020 and the return in FORM GSTR-3B for the tax period September, 2020 shall be furnished with the cumulative adjustment of input tax credit for the said months in accordance with the condition above: PROVIDED FURTHER that such condition shall apply cumulatively for the period April, May and June, 2021 and the return in FORM GSTR-3B for the tax period June, 2021 or quarter ending June, 2021, as the case may be, shall be furnished with the cumulative adjustment of input tax credit for the said months in accordance with the condition above." (emphasis added) 35. Also, relevant to us, Rule 37 of Rules, read as below: "37. Reversal of input tax credit in the case of non-payment ....
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....; (c) debit and credit notes, if any, issued during the month for invoices issued previously. (3) The details of outward supplies furnished by the supplier shall be made available electronically to the concerned registered persons (recipients) in Part A of FORM GSTR-2A, in FORM GSTR-4A and in FORM GSTR-6A through the common portal after the due date of filing of FORM GSTR-1. (4) The details of inward supplies added, corrected or deleted by the recipient in his FORM GSTR-2 under section 38 or FORM GSTR-4 or FORM GSTR-6 under section 39 shall be made available to the supplier electronically in FORM GSTR-1A through the common portal and such supplier may either accept or reject the modifications made by the recipient and FORM GSTR-1 furnished earlier by the supplier shall stand amended to the extent of modifications accepted by him. *(5) Notwithstanding anything contained in this rule,- (a) a registered person shall not be allowed to furnish the details of outward supplies of goods or services or both under section 37 in FORM GSTR-1, if he has not furnished the return in FORM GSTR-3B for preceding two months; (b) a registered person, required to furnish return for every qu....
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....rein details of such other inward supplies, if any, required to be furnished under sub-section (2) of section 38. (2) Every registered person shall furnish the details, if any, required under sub-section (5) of section 38 electronically in FORM GSTR-2. (3) The registered person shall specify the inward supplies in respect of which he is not eligible, either fully or partially, for input tax credit in FORM GSTR-2 where such eligibility can be determined at the invoice level. (4) The registered person shall declare the quantum of ineligible input tax credit on inward supplies which is relatable to non-taxable supplies or for purposes other than business and cannot be determined at the invoice level in FORM GSTR-2. (4A) The details of invoices furnished by an non-resident taxable person in his return in FORM GSTR-5 under rule 63 shall be made available to the recipient of credit in Part A of FORM GSTR- 2A electronically through the common portal and the said recipient may include the same in FORM GSTR-2. (5) The details of invoices furnished by an Input Service Distributor in his return in FORM GSTR-6 under rule 65 shall be made available to the recipient of credit in Part....
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...., the availment of restricted credit in terms of sub-rule (4) of rule 36 of CGST Rules shall be done on self-assessment basis by the tax payers. Various issues relating to implementation of the said subrule have been examined and the clarification on each of these points is as under: - Sl No. Issue Clarification .. ... ... 3. FORM GSTR-2A being a dynamic document, what would be the amount of input tax credit that is admissible to the taxpayers for a particular tax period in respect of invoices/debit notes whose details have not been uploaded by the suppliers? The amount of input tax credit in respect of the invoices / debit c notes whose details have not been uploaded by the suppliers at shall not exceed 20% of the eligible input tax credit available to at the recipient in respect of invoices or debit notes the details of at which have been uploaded by the suppliers under sub-section me (1) of section 37 as on the due date of filing of the returns in a FORM GSTR-1 of the suppliers for the said tax period. The taxpayer may have to ascertain the same from his auto populated FORM GSTR 2A as available on the due date of filing of se FORM GSTR-1 under sub-section (1) of se....
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.... fee for delay in furnishing the statement of outward supplies in FORM GSTR-1 for taxpayers for the tax periods March, 2020 to May, 2020 and for quarter ending 31st March 2020 if the same are furnished on or before 30th day of June, 2020. 5. Notification No. 34/2020-Central Tax, dated 03.04.2020 Extension of due date of furnishing statement, containing the details of payment of self-assessed tax in FORM GST CMP-08 for the quarter ending 31st March, 2020 till the 7th day of July, 2020 and filing FORM GSTR-4 for the financial year ending 31st March, 2020 till the 15th day of July, 2020. 6. Notification No. 35/2020-Central Tax, dated 03.04.2020 Notification under section 168A of CGST Act for extending due date of compliance which falls during the period from the 20th day of March, 2020 to the 29th day of June, to 30th day of June, 2020. 3. Various issues relating to above mentioned notifications have been examined. In order to ensure uniformity in the implementation of the provisions of the law across the field formations, the Board, in exercise of its powers conferred under section 168(1) of the CGST Act hereby clarifies each of these issues as under:- S No. Issue Clar....
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....rnover in preceding financial year is above Rs. 5 Crore? As explained above, the rate of interest has been notified as Nil for first 15 days from the due date, and 9 per cent per annum thereafter, for the said months. The same can be explained through an illustration. Illustration:- Calculation of interest for delayed filing of return for the month of March, 2020 (due date of filing being 20.04.2020) may be illustrated as per the below Table: S. No. Date of Filing GSTR-3B No. of days of delay Whether condition for reduced interest is fulfilled ? Interest 1. 02.05.2020 11 Yes Zero interest 2. 20.05.2020 30 Yes Zero interest for 15 days+interest rate @ 9% p.a. for 15 days 3. 20.06.2020 61 Yes Zero interest for 15 days+interest rate @ 9% p.a. for 46 days 4. 24.06.2020 65 Yes Zero interest for 15 days+interest rate @ 9% p.a. for 50 days 5. 30.06.2020 71 No Interest rate @ 18% p.a. for 71 days (i.e. no benefit of reduced interest) 5. ... ... 6. Whether the due date of furnishing the statement of outward supplies in FORM GSTR-1 under section 37 has been extended for the months of February, March and April 2020? Under the provisions of....
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....day-to-day working. 41. At the same time, at the enforcement level, the entire scheme to avail the ITC is regulated and made subject to the conditions and restrictions as prescribed under the Act and the Rules. The language of section 16 (1) of the Act is clear, to that extent. Thus, the eligibility to Input Tax Credit is governed by sub-Section (2) of Section 16 of the Act. It begins with a non-obstante clause. It provides, no registered person would be entitled to take credit of ITC unless: he has in his possession the Tax Invoice or Debit Note or other tax paying document (as may be prescribed), issued by the supplier; the supplier has furnished details of such Tax Invoice etc., under Section 37 of the Act, with communication to the recipient; the recipient has received the goods or services or both; subject to provisions of Section 41 of the Act, the liability of tax charged has actually been discharged to the Government and return has been filed under section 39 of the Act. 42. At the same time, the proviso to sub-section (2) of Section 16 of the Act itself provides, where the recipient fails to pay to the supplier the value for the supply made along with tax payable, within....
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....y return by the supplier, in depositing the due tax with the Government. 45. That general discussion apart, the furnishing of details by the supplier on GSTR-1 as may be reflected on GSTR 2A to the recipient is what engages our attention, directly. 46. Considering the general prescription in law that any monthly return should normally be filed by the supplier (in terms of section 39 of the Act), on or before the 20th day of the following month, it cannot escape judicial recognition that the second proviso to Section 16(2) the Act itself creates a provisional right to the recipient to avail ITC (even after lapse of that shorter time period), up to the expiry of the larger period of 180 days. In case of non-payment within 180 days, provisions exist to reverse the ITC granted/availed. At the same time, there is no negative prescription under the Act or the Rules that ITC claim may never arise unless the tax is first paid by the recipient, and/or is deposited by the supplier with the State Government. 47. The provision and the stage of reversal may allow the revenue authorities to reverse the provisional benefit granted, upon default arising and being proven. It is equally true that....
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....also been taken by the Calcutta High Court in Suncraft Energy Private Limited and Anr. Vs The Assistant Commissioner, State Tax, MAT 1218 of 2023 decided on 02.08.2023, upon consideration of the Press Release dated 18.10.2018. We do not find any good reason to take any different view, both for the reasoning of the Calcutta High Court and for our reasoning given above. Therefore, by necessary implication details furnished on Form GSTR-1 are nothing more than a necessary step in that facilitation. Further restrictions and law would have to be seen to test the submission advanced by the learned Additional Advocate General. 51. As a fact consideration, it may also be noted, the impugned order is neither based on the reasoning of any collusion or misrepresentation, or fraud played by the petitioner in obtaining the Tax Invoices from its suppliers nor those Tax Invoices were alleged to be not genuine. On the contrary, the impugned order is based on the legal reasoning arising from the reading of the provisions of the Act and the Rules read with the Notifications and Circular. 52. First, it has been reasoned, Rule 36(4) of the Rules would apply cumulatively from February 2020 up to Augu....
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....gible ITC Rs. 7,83,43,50,224.58/-. The petitioner having availed higher ITC amount Rs. 8,93,50,40,324.89/- disclosed in GSTR-3B filed by the petitioner for the months of February to September 2020, excess ITC has been deduced at Rs. 1,10,06,90,100.31/-. On the other hand, according to the petitioner, the revenue ought to have looked at the figures of ITC available as per GSTR-2A as they stood in September 2020, being the month when the petitioner was bound to file its return for the tax period August 2020. 56. Therefore, the dispute falls into a very narrow compass - as to the meaning to be given to the first proviso to Rule 36(4) of the Rules. More precisely we must see if cumulative adjustment spoken of under the said proviso would refer to the figure of eligible ITC as it existed in the individual months - February 2020 to August 2020 or it would be the figure that would have existed on the date of filing of return for the period September 2020. 57. In that regard, the reply furnished by the petitioner is specific. Relevant to our discussion, paragraph nos. 6 and 8 of the said reply read as below: "6. That there was no additional ITC claimed by the company as the company has....
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.... to 5% which is currently applicable. Further, in terms of Notification no. 30/2020 Central Tax taxpayer had given option to defer the rule 36(4) provisions related to restrictions of 10% from February-20 to August-20 till August-2020 and can cumulatively make the adjustments related to the month of February-2020 to August-2020 at the time of filing monthly GSTR 3B of September-2020;" 60. Next, in paragraphs 47, 50, 51, 52, 53 of the writ petition, it has been stated as below: "47. That the impugned order is erroneous as it denies the input tax credit on the basis of GSTR 2A generated on the date of filing of GSTR 3B i.e. 20th day of the month. While doing so, the impugned order relies upon Circular no. 123/42/219-GST dated 11.11.2019. 50. That as a result of the above extended credit period, an invoice issued by the suppliers in the month of May 2020 for which the supplier would have complied in the month of June 2020 would get booked in the books of accounts of the petitioner in the month of July 2020 only and the petitioner would have availed the credit of the said invoice while filing the GSTR-3B of the tax period of July 2020 which gets due in the month of August 2020. Th....
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....ppears to be on the strength of the first proviso to Rule 36(4) of the Rules. 62. Besides the above, the issue being raised is purely legal. The revenue does not contend that Rule 36(4) is not applicable to the facts of the present case. Both parties agree that Rule 36(4) is clearly applicable to the facts of the present case. They differ widely on the interpretation of that Rule. Therefore, for that reason also, we cannot sustain the objection raised by the revenue that the plea being raised before us is a new plea as may not have been considered by the revenue authorities. On facts, that plea appears to have been raised. Otherwise also, it remains available to the petitioner to be raised in the present proceedings, being a purely legal plea raised in undisputed facts. 63. As to the merits, the language of the first proviso to Rule 36(4) is plain and clear. Read along with the main part of sub-Rule 4, it only provides an exception to the scheme contained in that sub-Rule. Thus, in the first place Rule 36(4) is complete and provides for a functional rule to avail ITC. It contemplated (during the relevant period) that the eligible ITC for each month would not exceed 10% of the eli....
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.... The English Language, Deluxe Encyclopedic Edition defines the word 'cumulate' as under : cu*mu*late (kju:mjuleit) press. part. cu*mu*lating past and past part. cu*mu*lat*ed v.t. to accumulate, heap up, amass ║ v.i. to become massed cu*mu*la*tion n. cu*mu*la*tive (kju:mjulәtiv) adj. gradually increasing by successive additions, cumulative effect ║ tending to accumulate [fr. L. cumulare (cumulatus) fr. cumulus, a heap] 67. Therefore, the condition contained in sub-Rule 4 of Rule 36 that the eligible ITC would not exceed 10% of the eligible credit as per Tax Invoice or Debit Note etc., filed on GSTR-1 would have to be seen cumulatively i.e., with all additions made, taken together. The period for which such cumulative effect was to be given has also been specified in that proviso, being for the months of February 2020 to August 2020. To that extent, there is no dispute between the parties. 68. The learned Additional Advocate General would also contend that the total amount of eligible credit for the months of February 2020 to August 2020 was to be seen in September 2020. According to him, the proviso contemplates that the return in Form GSTR-3B for the t....
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....tical computation of the amounts of eligible ITC as they existed on the last date of filing of GSTR-1 for the months of February 2020 to August 2020, individually. 72. The words "in accordance with the condition above" only indicate the extent to which the registered person may claim ITC more than the eligible credit as per the form GSTR-I - as reconciled up to filing of the return for the month of September 2020 i.e., 110% of the figure obtaining at the relevant time. The mention of Form GSTR-I appearing in the sub-Rule 4 is not by way of a fresh or other stipulation of date on which eligible ITC is to be computed but by way of evidence that must exist as to eligible ITC. If that date would be read for the purpose of grant of cumulative adjustment of ITC under the first proviso to such Rule, it would negate the whole operation of the Rule itself. 73. Also, that interpretation would render redundant the language of the first proviso to the said Rule insofar as it stipulates that the condition of main sub-Rule (4) of Rule 16 of the Rules "shall apply cumulatively" and that the return for the period September 2020 shall be furnished with "cumulative adjustment" of ITC for the month....
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....stment" of ITC for the said months. Read together, that cumulative adjustment is to be seen in the return for tax period of September 2020, only. With the internal monthly boundaries erased by the first push in the proviso, its later part delivers the relief contemplated by the legislature. 78. Once the petitioner was permitted to claim a "cumulative adjustment" for prior period while filing the return for the later period, clearly it is the date of filing a return for a later period on which the cumulative effect would arise and be given effect to. Any other construction would contradict the plain language used by the legislature. 79. The words "in accordance with the conditions above" appearing at the end of the first proviso of Rule 36(4) only state the fact that the details of the Tax Invoice and/or Debit Notes would have to give rise to the eligible ITC. It is not the case with the revenue that such details were not disclosed or were incorrect. 80. Therefore, the method adopted by the revenue authorities in giving effect to Rule 36(4) is found to be faulty. The reliance placed by them on the Circular letter no. 113 dated 11.11.2019 is plainly misplaced. That line of reasoni....
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....11 (para 10). 83. There being no other objection including as to alternative remedy, we find, the writ petition deserves to be allowed. 84. At this stage (of the oral order), the learned Additional Advocate General pressed, in any case, the petitioner would be entitled to ITC as on 10.09.2020 and not to the date of filing form GSTR-3B for the month of September 2020 which would be October 2020. In view of the discussion made above, no further discussion is required in the present facts. Yet, the following reasoning given by the revenue authorities has also been referred to by Shri Goyal: "It is explicitly clear from the above provisions that ITC shall be claimed in GSTR-3B on the basis of GSTR-2A generated on the due date of filing of Form GSTR-1 (i.e. 11th day of the month) not on the due date of filing of GSTR-3B (i.e. 20th day of the month)." 85. The above reasoning is not to the effect that the petitioner was not entitled to any part of the "cumulative adjustment" sought for the months of February 2020 to August 2020 against the monthly return filed for the period September 2020. It is also, not the case of the revenue that on 10.10.2020 the petitioner was entitled to any ....