2026 (5) TMI 149

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....d 22.02.2024 as well as the Show Cause Notice at Annexure-'A' dated 05.12.2023. 3. The petitioner submits that the appeal against such order came to be rejected on the basis of delay in terms of the Order-in-Original at Annexure-'B' without entering into the merits of the matter. 4. It is submitted that the order whereby delayed claim of ITC was rejected requires to be reconsidered in light of amendment made to Section 16 of the Central Goods and Services Tax Act, 2017 (for short 'CGST Act') by virtue of insertion of sub-clause (5) to Section 16, by virtue of which the assessee would be entitled to claim Input Tax Credit (ITC), if returns are filed before 30.11.2021. 5. It is to be noticed that the Order-in-Original at Annexure-'B'....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ug-18 866 5,587 5,587 15-11-2019 Sep-18 31,344 5,580 5,580 15-11-2019 Oct-18 40,066 16,848 16,848 16-11-2019 Nov-18 98,402 11,120 11,120 16-11-2019 Dec-18 595 4,708 4,708 16-11-2019 Jan-19 6,036 29,263 29,263 16-11-2019 Feb-19 3,365 6,705 6,705 30-09-2020 Mar-19 16,645 12,723 12,723   Total 2,22,879 1,43,294 1,43,294 8. It is to be noticed that amendment to Section 16(5) starts with a non-obstante clause. Section 16(5) reads as follows:- "16. Eligibility and conditions for taking input tax credit. (5) Notwithstanding anything contained in sub-section (4), in respect of an invoice or debit....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....he Central Board of Indirect Taxes and Customs vide Circular No. 237/31/2024-GST dated 15.10.2024, issued to all Principal Chief Commissioners/Chief Commissioners/ principal Commissioners/ Commissioners of Central Tax (All) and Principal Director General/Directors General (All) has clarified the issues regarding implementation of provisions of sub-section (5) and sub-section (6) in section 16 of CGST Act, 2017. The Circular clarifies that sub-section (5) of Section 16 has been inserted retrospectively with effect from 01.07.2017 vide Finance (No.2) Act, 2024, thereby overriding the earlier time restriction prescribed under sub-section (4) of Section 16 in respect of the financial years 2017-18, 2018-19, 2019-20 and 2020-21. Subsection (5) t....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ing claimed ITC with respect to the financial year 2018-19, by virtue of Section 16(5), petitioner's entitlement would be extended till 30.11.2021, whereas the return of the petitioner was filed on 28.10.2019. The return filed is within the extended time prescribed under Section 16(5)." 10. In light of the provision starting with a non-obstante clause, it could be construed that the provision would enable the claim of ITC, if the returns are filed with respect to the years mentioned in sub-section (5) of Section 16 before 30.11.2021. In the present case, the claim of ITC relates to the year 2019-2020. If that were to be so, if the returns were filed before 30.11.2021, the petitioner is eligible for claim of ITC. In the present case, the ....