GOLDEN MIST TRADING vs STATE TAX OFFICER, TAX PAYER SERVICES CIRCLE

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2026 Supreme(Online)(Ker) 24072

IN THE HIGH COURT OF KERALA AT ERNAKULAM
ZIYAD RAHMAN A.A., J
GOLDEN MIST TRADING – Appellant
Versus
STATE TAX OFFICER, TAX PAYER SERVICES CIRCLE – Respondent
WP(C) NO. 11515 OF 2026

Important Points

The entitlement to input tax credit under Section 16(5) overrides the restrictions imposed by Section 16(4) upon timely return submissions.

Subject

Tax Law - Goods and Services Tax

Act Referred

CGST Act: S.16(4), S.16(5), S.73

Headnote

This writ petition challenges Ext.P4 order passed under Section 73 of the CGST Act, which declined the petitioner's input tax credit for November 2018 to March 2019 due to late submission of returns. The petitioner argues entitlement to credit under Section 16(5) as they submitted returns by the cut-off date of 30.11.2021. The court finds merit in the petitioner's claim, emphasizing the applicability of Section 16(5) over Section 16(4). The court quashes Ext.P4 and directs reassessment of the claim.

Advocates:
For the Appellants/Petitioners: SHRI.AKHIL SURESH, SMT.KALLIYANI KRISHNA B., SHRI.AMRITH M.J., SMT.ANITA ELIZEBETH BABU, SHRI.ANURAJ V. G.
For the Respondents: SHRI.ALAN PRIYADARSI DEV

Table of Content
1. the petitioner is a registered taxpayer under the cgst act. (Para 1)
2. the court emphasizes the significance of section 16(5) in allowing input tax credits despite delays. (Para 2)

JUDGMENT

The petitioner is a registered taxpayer under the provisions of the CGST/KGST Act. The challenge in this writ petition is against Ext.P4 order in original passed under Section 73 of the CGST Act . The challenge is raised mainly on the ground that, as per the impugned order, the input tax credit claimed by the petitioner was declined for the months of November 2018 to March 2019. The reason is that the petitioner failed to submit the returns within the period stipulated under Section 16(4) of the CGST Act . The challenge is raised mainly on the ground that the petitioner is entitled to claim the input tax credit in the light of Section 16(5) of the Act, as the petitioner had submitted all the said returns before the cut off date contemplated in the said provision, which is

30.11.2021.

2. On perusal of Ext.P4 order, it is seen that the petitioner had submitted all the relevant returns on 30.11.2019, and thus the petitioner is entitled to the benefit of Section 16(5) of the Act. This is particularly because, Section 16(5) contains a non obstante clause with regard to Section 16(4), and therefore, once the taxpayer submits the returns within the cut off date contemplated under Section 16(5), the timeline contemplated under Section 16(4) loses its significance. In such circumstances an interference is required.