The Jharkhand High Court has allowed the Input Tax Credit on delayed returns.
The bench of Chief Justice M. S. Ramachandra Rao and Justice Deepak Roshan has observed that Clause (5) of Section 16 inserted by the Finance (No.2) Act, 2024, with effect from 01.07.2017, the department directed to allow the petitioner to take Input Tax Credit in respect of delayed returns filed for the Financial Year 2017-18, and the interest and penalty levied on the petitioner by the respondents shall be refunded with 6% p.a interest from the date of such collection till the date of repayment.
Section 16(5) relates to relaxation in conditions of section 16 of the CGST Act, 2017 w.e.f. 01.07.2017. Extending the deadline for claiming ITC for invoices or debit notes under section 16(4) of the CGST Act, to 30th November, 2021 for financial years 2017-18, 2018-19, 2019-20 and 2020-21.
The petitioner/assessee has challenged Section 16(4) of the Central Goods and Services Tax Act, 2017 as ultra vires, inasmuch as, it seeks to restrict the availment of Input Tax Credit, within a time frame, which is being violative of Article 14, Article 19(1)(g) and Article 300A of the Constitution of India and also being violative of the basic structure of the Goods and Services Tax Act, 2017.
The court disposed of the writ petition.
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Case Details
Case Title: M/s. Ram Constructions Versus UOI
Case No.: Union of India
Date: W.P (T) No. 2148 of 2024
Counsel For Petitioner: Nitin Kumar Pasari
Counsel For Respondent: Ashok Kumar Yadav
