The petitioner is entitled to input tax credit as returns were submitted within the timeline specified under Section 16(5) of the CGST Act, overriding Section 16(4).

JUDGMENT

The petitioner is a registered tax payer under the provisions of the CGST and KSGST Act, 2017. The challenge raised in this writ petition is against Ext.P2 order passed under Section 73 of the CGST Act, by which, the input tax credit claimed by the petitioner pertaining to the months from October, 2018 to March 2019 were declined. The reason for rejecting the input tax credit is that, the petitioner failed to submit the returns within the period contemplated under Section 16 (4) of the CGST/SGST Act . The challenge is raised mainly on the ground that, the petitioner is entitled to the input tax credit in the light of (5) of the CGST/SGST Act, since the petitioner had submitted all the relevant returns within the cut of date contemplated therein, which is 30.11.2021. On perusal of Ext.P1, which is the show cause notice, it is seen that, the petitioner had submitted the relevant returns during the period from 26.11.2019 to 09.12.2019. Thus, it is evident that the petitioner had submitted the returns before the cut of date contemplated under (5) and hence the petitioner is entitled to the relief sought for. This is particularly because, (5) contains a non-obstante clause as regards (4) and therefore, once the tax payer submits the returns within the period stipulated under (5), the timeline contemplated under (4) losses its significance. In such circumstances, an interference is required.

Accordingly, this writ petition is disposed of, quashing Ext.P2 with a direction to the 1^st respondent to reconsider the matter and grant the benefits of Section 16 (5) of the CGST Act, if the petitioner is otherwise entitled.