The Kerala High Court in the case of Lloyd Insulations India Limited Versus State Tax Officer has opened the door for revisiting denied GST ITC claims.
The bench of Justice Gopinath P. has observed that on account of notification of Sub-Section (5) of Section 16 of the CGST/SGST Acts, the petitioner will be entitled to input tax credit, which has been denied to the petitioner.
The bench directed the competent authority to revisit the case and pass fresh orders, taking into account the newly inserted Section 16(5) of the CGST Act.
The petitioner/assessee was aggrieved by the fact that petitioner has been denied the benefit of input tax credit on account of the provisions contained in Sub Section (4) of Section 16 of the CGST/SGST Acts, for the financial year 2019-20, through Ext.P3 order dated 23.08.2024.
The petitioner contended that, with the notification of Sub-Section (5) of Section 16 of the CGST/SGST Acts, the petitioner would now be entitled to the benefit of input tax credit which has been denied to the petitioner.
Sub-section (5) and sub-section (6) of section 16 of the Central Goods & Services Tax Act, 2017 (hereinafter referred to as the “CGST Act”) inserted in section 16 of the CGST Act, with effect from the 1st day of July, 2017, vide section 118 of the Finance (No. 2) Act, 2024, whereby the time limit to avail input tax credit under provisions of sub-section (4) of section 16 of CGST Act has been retrospectively extended in certain specified cases.
The court quashed the order to the extent that it denied input tax credit to the petitioner on account of the provisions of Sub Section (4) of Section 16 of the CGST/SGST Acts and directing the competent authority to pass fresh orders, after taking note of the provisions contained in Section 16(5) of the CGST/SGST Acts and after affording an opportunity of hearing to the petitioner, within a period of three months.
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Case Details
Case Title: Lloyd Insulations India Limited Versus State Tax Officer
Case No.: WP(C) NO. 40443 OF 2024
Date: 15/11/2024
Counsel For Petitioner: Aditya Unnikrishnan, Nivedita A.Kamath, Binisha Baby, Saritha K.S., Anil D. Nair
Counsel For Respondent: Jasmine M M
