Summary Of Case: Telefine Paper Products vs. The Deputy State Tax
Officer-2, Kamarajar Salai Assessment Circle, Madurai District (Respondent).
Case
Number: W.P.(MD)No. 20974 of 2024.
Court:
Madurai Bench of the Madras High Court.
Date
of Order: 03.09.2024.
Judge:
The Honourable Mr. Justice Mohammed Shaffiq.
Facts
of the Case:The petitioner, Tvl. Telefine Paper
Products, filed the writ petition challenging the assessment order passed by
the respondent on 24.04.2024 for the financial year 2018-2019. The issue arose
when the petitioner’s Input Tax Credit (ITC) claims were disallowed due to being
lodged beyond the time period prescribed under Section 16(4) of the GST Acts.
Submission
by the Petitioner:The petitioner argued
that a recent amendment to Section 16 of the GST Acts (brought into force by
Section 118 of the Finance (No. 2) Act, 2024) allowed the petitioner to claim
ITC for the financial years 2017-2018 to 2020-2021 up until the 30th of
November 2021. Therefore, the petitioner contended that the disallowance of ITC
by the respondent was no longer valid in light of this amendment, and the
assessment should be reconsidered.
Submission
by the Respondent:The respondent’s
counsel stated that they would re-do the assessment based on the new amendment
provided by the Finance (No. 2) Act, 2024.
Findings
and Judgement:The court acknowledged the petitioner’s
submission regarding the amendment in the GST Act. The impugned assessment
order dated 24.04.2024 was set aside. The court directed the respondent to
re-do the assessment considering the amendment. The petitioner was granted
three weeks to file their objections along with the relevant amendment details.
If the petitioner did not file the objections within the stipulated time, the
original impugned order would be revived.
The
court also directed the respondent to pass an order after affording a reasonable
opportunity of hearing to the petitioner.
Conclusion:The
writ petition was disposed of with the direction to the respondent to re-assess
the case considering the Finance (No. 2) Act, 2024, and the new provisions
regarding ITC claims.
Full Content of the Judgment in
Italics:
W.P.(MD)No.20974
of 2024
BEFORE
THE MADURAI BENCH OF MADRAS HIGH COURT
DATED:
03.09.2024
CORAM
THE
HONOURABLE MR. JUSTICE MOHAMMED SHAFFIQ
W.P.(MD)No.20974
of 2024 and W.M.P.(MD)Nos.17766 and 17767 of 2024
Tvl.Telefine
Paper Products,
Represented
by its Partner,
S.G.Srinivasan
... Petitioner
Vs.
The
Deputy State Tax Officer-2,
Kamarajar
Salai Assessment Circle,
Commercial
Taxes Buildings,
Dr.Thangaraj
Salai,
Madurai
District. ... Respondent
PRAYER:
Writ Petition filed under Article 226 of the Constitution of India for issuance
of Writ of Certiorari, calling for the records pertaining to the impugned
proceedings passed by the respondent vide order in GSTIN:
33AAGFT4167P1ZN/2018-19, dated 24.04.2024 and quash the same as the same is
passed by grossly violating the principles of natural justice and also passed
against the provisions of the Tamil Nadu Goods and Services Tax Act,
2017/Central Goods and Services Tax Act, 2017.
For
Petitioner: Mr. A. Satheesh Murugan
For
Respondent: Mr. J.K. Jayaselan, Government Advocate
ORDER
The
present Writ Petition is filed challenging the assessment order dated
24.04.2024 for the period 2018-2019, on the premise that the Input Tax Credit
(ITC) has been disallowed only on the ground that the claims have been lodged
beyond the period prescribed under Section 16(4) of the GST Acts.
It
is submitted that an amendment has been brought into the GST Acts and that
Section 16(5) has now been inserted vide Section 118 of the Finance (No. 2)
Act, 2024 and the relevant provision reads as under:
“118.
In section 16 of the Central Goods and Services Tax Act, with effect from the
1st day of July, 2017, after sub-section (4), the following sub-sections shall
be inserted, namely:––
(5)
Notwithstanding anything contained in sub-section (4), in respect of an invoice
or debit note for supply of goods or services or both pertaining to the
Financial Years 2017-18, 2018-19, 2019-20 and 2020-21, the registered person
shall be entitled to take input tax credit in any return under section 39 which
is filed up to the thirtieth day of November, 2021.”
It
is submitted by the learned counsel for the petitioner that in view of the
above amendment, the reasons cited by the adjudicating authority while passing
the impugned order of assessment may no longer survive and the respondent would
have to re-do the assessment in accordance with the above amendment.
The
learned counsel for the petitioner would submit that earlier this Court has on
numerous occasions, remanded on the basis of the Bill proposing the present
amendment. The learned counsel for the respondent would submit that they would
re-do the assessment taking into account the Finance (No. 2) Act, 2024.
In
view thereof, the impugned order passed by the respondent dated 24.04.2024 is
set aside. The learned adjudicating authority/respondent would re-do the
assessment by taking into account the amendment referred to above. 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. If such a reply is filed, the same shall be considered and
orders shall be passed after affording a reasonable opportunity of hearing to
the petitioner. If such a reply is not filed within the prescribed period,
i.e., three weeks from the date of receipt of a copy of this order, the
impugned order shall stand revived. In respect of all other issues, the
assessment order would remain undisturbed.
With
the above direction, this Writ Petition is disposed of. No costs. Consequently,
connected miscellaneous petitions are closed.
03.09.2024
NCC:yes/no
Index:yes/no
Internet:yes/no
Nsr
To:
The
Assistant Commissioner (State Tax),
Kamarajar
Salai Assessment Circle,
Commercial
Taxes Buildings,
Dr.Thangaraj
Salai,
Madurai
District.
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