[Cites 9, Cited by 0]
Gauhati High Court
Page No.# 1/5 vs Union Of India And 3 Ors on 6 April, 2026
Page No.# 1/5
GAHC010061162026
2026:GAU-AS:5016
THE GAUHATI HIGH COURT
(HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH)
Case No. : WP(C)/1733/2026
SAURABH AGARWALLA
S/O- LATE PARAMESHWAR AGARWALLA, R/O- JSB UDAYAN, K.P. ROAD,
DIST. DIBRUGARH, ASSAM
VERSUS
UNION OF INDIA AND 3 ORS
REPRESENTED BY THE SECRETARY TO THE GOVERNMENT OF INDIA,
MINISTRY OF FINANCE, DEPARTMENT OF REVENUE, ROOM NO. 66A,
NORTH BLOCK, NEW DELHI-110001.
2:THE COMMISSIONER
CENTRAL GOODS AND SERVICES TAX
MILAN NAGAR
LANE-F
P.O. C.R. BUILDING
DIBRUGARH-786003.
3:THE ASSISTANT COMMISSIONER
CENTRAL GOODS AND SERVICES TAX
MILAN NAGAR
LANE-F
P.O. C.R. BUILDING
DIBRUGARH-786003.
4:THE SUPERINTENDENT
CENTRAL GOODS AND SERVICE TAX
DIBRUGARH DIVISION
C.R. BUILDING
DIBRUGARH-786003
ASSA
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Advocate for the Petitioner : MR. R S MISHRA, MS B SARMA,MS. M DEY
Advocate for the Respondent : DY.S.G.I., SC, GST
BEFORE
HONOURABLE MR. JUSTICE ANJAN MONI KALITA
ORDER
Date : 06-04-2026
Heard Mr. R. S. Mishra, learned counsel for the petitioner and Ms. P.
Uppadhyaya, learned counsel appearing on behalf of Mr. S. C. Kayal, learned
DSGI for the respondents/CGST.
2. The petitioner, in the present case, has challenged the Demand-cum-Show
Cause Notice dated 20.10.2023, issued by respondent No. 4, alleging that
during the financial year 2018-19, the petitioner has availed Input Tax Credit
(hereinafter referred to as 'ITC') amounting to Rs. 2,38,928/-, which was in
violation of Section 16(4) of the Central Goods and Services Tax Act (hereinafter
referred to as 'CGST'), 2017, as the ITC was availed beyond the time limit
prescribed by Section 16(4) of the CGST Act. Pursuant to the issuance of the
said Show Cause Notice, Respondent No. 4 passed the Order-in-Original dated
07.02.2024, confirming the demand of Rs. 2,49,142/- along with interest of Rs.
553/- and a penalty of Rs. 24,914/-.
3. It is the case of the petitioner that subsequent to the passing of the
aforementioned Order-in-Original dated 07.02.2024, Subsections 5 and 6 were
inserted in Section 16, extending the time limit for availing ITC for the financial
years 2017-18, 2018-19, and 2019-20 until 30th November 2021. The petitioner
is required to pay a demand of Rs. 2,38,928/-.
4. It may be relevant to refer to Section 16, both pre-amendment and post-
Page No.# 3/5
amendment, of the CGST Act, 2017, which is extracted hereinbelow:
"16(4). A registered person shall not be entitled to take input tax
credit in respect of any invoice or debit note for supply of goods or
services or both after the [thirtieth day of November] following the end of
financial year to which such invoice or [xxx] debit note pertains or
furnishing of the relevant annual return, whichever is earlier: [PROVIDED
that the registered person shall be entitled to take input tax credit after
the due date of furnishing of the return under Section 39 for the month of
September, 2018 till the due date of furnishing of the return under the
said section for the month of March, 2019 in respect of any invoice or
invoice relating to such debit note for supply of goods or services or both
made during the financial year 2017-18, the details of which have been
uploaded by the supplier under sub-Section (1) of Section 37 till the due
date for furnishing the details under sub-section (1) of the said section for
the month of March, 2019.]"
5. The provisions of Sections 5 and 6, as incorporated vide the said
amendment, being relevant, is extracted hereinbelow:
"(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 upto the thirtieth day of November, 2021.
(6) Where registration of a registered person is cancelled under section 29
and subsequently the cancellation of registration is revoked by any order,
either under section 30 or pursuant to any order made by the Appellate
Authority or the Appellate Tribunal or Court and where availment of input
tax credit in respect of an invoice or debit note was not restricted under
sub-section (4) on the date of order of cancellation of registration, the said
person shall be entitled to take the input tax credit in respect of such
invoice or debit note for supply of goods or services or both, in a return
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under Section 39,-
(i) filed upto thirtieth day of November following the financial year to
which such invoice or debit note pertains or furnishing of the relevant
annual return, whichever is earlier; or
(ii) for the period from the date of cancellation of registration or the
effective date of cancellation of registration, as the case may be, till
the date of order of revocation of cancelation of registration, where
such return is filed within thirty days from the date of order of
revocation of cancellation of registration."
6. It is seen from the aforementioned amendment that notwithstanding
anything contained in Section 16(4) CGST Act, 2017, in respect of any invoice or
debit note for the 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 ITC in any return under Section 39, which is filed up to
the 30th day of November, 2021.
7. In view of the aforementioned amendment, it is clear that the challenge
made in the present proceedings before this Court is no longer required to be
addressed. Accordingly, considering the amendments, it is evident that the
petitioner is entitled to avail the benefit of ITC for the relevant period.
8. Ms. P. Uppadhyaya, learned counsel appearing for the respondents, submits
that the instant petition can be disposed of by directing the petitioner to pay the
amount of Rs. 10,214/- which is the excess utilized amount and Rs. 553/- which
is the interest on the case amount.
9. In response to the submissions made by the learned counsel for the
respondents, the learned counsel for the petitioner submits that he does not
have any objection to the payment of the aforesaid two amounts. Therefore, the
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instant petition is disposed of with a direction to the petitioner to pay the
amount of Rs. 10,214/- (excess utilized amount) and Rs. 553/- (interest on the
case amount) within a period of 30 days from the receipt of the certified copy of
this order.
10. In view of the aforesaid direction, the Order-in-Original dated 07.02.2024 is
set aside.
11. With the above directions and observations, the instant writ petition stands
disposed of.
JUDGE
Comparing Assistant
