HC Remands Matter for Fresh Order to Allow ITC as FA 2024 Provides for Regularizing Delay in Claiming ITC

Case Details: Tvl. Muthu Rathina Indane Gas Agencies v. Joint Commissioner (ST) (Intelligence) - [2024] 166 taxmann.com 231 (Madras)

Judiciary and Counsel Details

• C. Saravanan, J.
• J. Prasanna Kumar for the Petitioner.
• Ms Amirtha Poonkodi Dinakaran, Govt. Adv. for the Respondent.

Facts of the Case

The petitioner was a registered Indane Gas Agency. The GST registration of the petitioner was cancelled and thereafter restored. The department issued notice to file returns and it filed reply to the notice and filed belated returns. Thereafter, the department passed an order denying ITC on ground of filing belated returns. It filed writ petition against the order and contended that the credit was wrongly denied.

High Court Held

The Honorable High Court noted that the petitioner had filed belated return and credit was denied by the department as per the provisions. However, it was noted that the Finance Act, 2024 amended provisions to regularize the delay in filing ITC by inserting Sections 16(5) and 16(6) of the CGST Act, 2017. Therefore, the Court held that the impugned order was to be set aside and matter was to be remitted back to the department to pass a fresh order as per new provisions.