[Cites 10, Cited by 0]
Karnataka High Court
M/S Manjunatha Exports vs The Deputy Commissioner Of Central Tax on 11 March, 2026
Author: S.Sunil Dutt Yadav
Bench: S.Sunil Dutt Yadav
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WP No. 6883 of 2026
HC-KAR
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 11TH DAY OF MARCH, 2026
BEFORE
THE HON'BLE MR. JUSTICE S SUNIL DUTT YADAV
WRIT PETITION NO. 6883 OF 2026 (T-RES)
BETWEEN:
M/S. MANJUNATHA EXPORTS,
A PARTNERSHIP FIRM CONSTITUTED UNDER
THE INDIAN PARTNERSHIP ACT, 1932,
REPRESENTED BY ITS PARTNER,
SRI. RAJINI G. K.
S/O C. S. GURUSWAMY,
AGED ABOUT 62 YEARS,
NO. 554, 3RD MAIN ROAD,
2ND PHASE, 6TH BLOCK,
BANASHANKARI 3RD STAGE,
BENGALURU - 560 085.
...PETITIONER
(BY SRI. VENKATESH G., ADVOCATE)
Digitally signed
by VIJAYA P
Location: AND:
HIGH COURT
OF
KARNATAKA 1. THE DEPUTY COMMISSIONER OF CENTRAL TAX,
WEST DIVISION-5, BENGALURU WEST
COMMISSIONERATE, 1ST FLOOR,
TTMC COMPLEX, BTMC BUS STAND,
BANASHANKARI,
BENGALURU-560070.
2. THE ADDITIONAL COMMISSIONER OF
CENTRAL TAX (APPEALS),
OFFICE OF THE COMMISSIONER OF
-2-
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WP No. 6883 of 2026
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CENTRAL TAX (APPEALS).
S1 AND S2, VINAYA MARG,
SIDDARTHA NAGAR,
MYSURU-570 011.
3. THE SUPERINTENDENT OF CENTRAL TAX,
RANGE-CWD5,
BENGALURU WEST COMMISSIONERATE,
BMTC BUS STAND COMPLEX,
FIRST FLOOR, BANASHANKARI,
BENGLURU-560 070.
...RESPONDENTS
(BY SRI. ARAVIND V. CHAVAN, ADVOCATE)
***
THIS WP IS FILED UNDER ARTICLES 226 AND 227
OF THE CONSTITUTION OF INDIA PRAYING TO QUASH
THE ORDER-IN-ORIGINAL NO.07/2021-22 WD5 DC DATED
03.08.2021 BEARING DIN: 20210857YU000000E567
PASSED BY THE RESPONDENT NO.1, HEREIN MARKED AS
ANNEXURE-A AND ETC.,
THIS PETITION, COMING ON FOR PRELIMINARY
HEARING, THIS DAY, ORDER WAS MADE THEREIN AS
UNDER:
CORAM: HON'BLE MR. JUSTICE S SUNIL DUTT YADAV
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NC: 2026:KHC:14516
WP No. 6883 of 2026
HC-KAR
ORAL ORDER
The petitioner has sought for setting aside of the
Order-in-Original at Annexure-A as well as the Order-in-
Appeal at Annexure-B. The petitioner has also sought for
refund of statutory pre-deposit made under Section 107(6)
of the Central Goods and Services Tax Act, 2017 (for short
'CGST Act').
2. The case made out by the petitioner is that the
form GSTR-3B for the month of March-2019 came to be
filed online by the petitioner though belatedly on
28.10.2019. It is stated that respondent No.1 has issued
show-cause notice, proposing to demand Input Tax Credit
(ITC) amounting to Rs.27,21,200/- which allegedly had
been availed in contravention of the provision of Section
16(4) of the CGST Act.
3. It is the contention of the petitioner that the
Assessing Authority had declined to permit the petitioner
to claim ITC on the ground that it was belated in light of
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Section 16(4) of the CGST Act. It is submitted that by
virtue of amendment to Section 16(5), which is a non-
obstante clause, the time limit prescribed under Section
16(4) stood relaxed for the years of financial years
2017-18, 2018-19, 2019-20 and 2020-21 till 30th day of
November, 2021. Accordingly, it is submitted that by
virtue of such amendment to the Finance Act with effect
from 01.07.2017, though the appointed date is
27.09.2024, the petitioner is entitled for credit to the ITC
availed.
4. Perused the Order-in-Original and Order-in-
Appeal. The only ground on which steps were taken to
deny ITC claim is that it was claimed beyond the period
prescribed under Section 16(4). Section 16(4) and Section
16(5) of the CGST Act reads as hereunder:
"16. Eligibility and conditions for taking
input tax credit.
(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
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both after the [thirtieth day of November]
following the end of financial year to which such
invoice or debit note pertains or furnishing of
the relevant annual return, whichever is earlier.
(5) Nothwithstanding 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."
5. It is pertinent to note that the Central Board of
Indirect Taxes and Customs vide Circular No.
237/31/2024-GST dated 15.10.2024, issued to all Principal
Chief Commissioners/Chief Commissioners/ principal
Commissioners/ Commissioners of Central Tax (All) and
Principal Director General/Directors General (All) has
clarified the issues regarding implementation of provisions
of sub-section (5) and sub-section (6) in section 16 of
CGST Act, 2017. The Circular clarifies that sub-section (5)
of Section 16 has been inserted retrospectively with effect
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from 01.07.2017 vide Finance (No.2) Act, 2024, thereby
overriding the earlier time restriction prescribed under
sub-section (4) of Section 16 in respect of the financial
years 2017-18, 2018-19, 2019-20 and 2020-21. Sub-
section (5) to Section 16 was inserted by the Finance
(No.2) Act, 2024, with retrospective effect from
01.017.2017. In pursuant thereof, the Ministry of Finance
(Department of Revenue) Central Board of Indirect Taxes
and Customs, issued Notification No.17/2024-Central Tax,
dated 27.09.2024, followed by Circular No. 237/31/2024-
GST dated 15.10.2024 providing clarification regarding the
implementation of the said provision. The aforesaid
legislative development by insertion of sub-section (5) to
Section 16 through Finance (No.2) Act 2024, read with the
clarification, affirms that claims of Input Tax Credit (ITC)
availed through GSTR-3B returns filed up to 30th
November 2021 shall be permissible. The relevant extract
is reproduced hereunder:
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"Reference is invited to 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."
6. It must be noticed that Section 16(5) was
inserted by way of an amendment by Finance Act (No.2),
2024. The said clause is a non-obstante clause, as it
states, "notwithstanding anything contained in sub-section
(4)". If that were to be so, in light of the petitioner having
claimed ITC with respect to the financial year 2018-19, by
virtue of Section 16(5), petitioner's entitlement would be
extended till 30.11.2021, whereas the return of the
petitioner was filed on 28.10.2019. The return filed is
within the extended time prescribed under Section 16(5).
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7. In light of the same, the Order-in-Original at
Annexure-A as well as the Order-in-Appeal at Annexure-B
are set aside. Matter is remitted to the stage of reply to
show-cause notice. The petitioner to appear before the
respondent No.1 on 15.04.2026.
8. Needless to state, the authority to look into the
factual aspects of eligibility of claim of ITC, but not to
revisit the permissibility of claiming ITC by virtue of the
extended time under Section 16(5) of the CGST Act, in
light of the discussion made above. All other contentions
are kept open.
Accordingly, petition is disposed of.
Sd/-
(S SUNIL DUTT YADAV)
JUDGE
MCR
