2024 (10) TMI 1300 - HC - GST

Challenge to assessment order - disallowance of Input Tax Credit - disallowed only on the ground that the claims have been lodged beyond the period prescribed under Section 16(4) of the GST Acts - HELD THAT - The impugned order passed by the respondent dated 24.04.2024 is set aside. The learned assessing adjudicating authority/respondent would re-do the assessment by taking into account the amendment referred supra. The petitioner may submit their objection by way of reply within a period of three weeks from the date of receipt of a copy of this order along with the amendment and other details. This Writ Petition is disposed of.

Summary

Issues: Challenge to assessment order disallowing Input Tax Credit based on time limit under Section 16(4) of GST Acts, impact of amendment inserting Section 16(5) allowing credit for specified financial years, need for reassessment in light of the amendment.

Analysis:
The Writ Petition challenges an assessment order disallowing Input Tax Credit due to claims being lodged beyond the prescribed period under Section 16(4) of the GST Acts. The petitioner contends that a recent amendment, specifically Section 16(5) inserted through The Finance (No. 2) ACT, 2024, allows for credit in specified financial years until November 30, 2021. The petitioner argues that this amendment renders the reasons cited by the adjudicating authority for the disallowance obsolete, necessitating a reassessment in line with the new provision.

The Court notes that previous remands have been made based on the proposed amendment bill. The respondent, represented by the learned counsel, agrees to re-do the assessment considering the recent amendment. Consequently, the impugned assessment order dated 24.04.2024 is set aside, and the adjudicating authority is directed to re-assess taking into account the amendment. The petitioner is granted three weeks to submit objections, failing which the impugned order will stand revived. However, for all other issues, the assessment order remains undisturbed.

With the above directions, the Writ Petition is disposed of without costs, and connected miscellaneous petitions are closed. The judgment emphasizes the need for reassessment in light of the recent legislative amendment allowing Input Tax Credit for specified financial years, overriding the previous time limit under Section 16(4) of the GST Acts.