Section 16(5) CGST Act overrides Sec.16(4) via non-obstante clause, allowing ITC if return filed by cutoff date.

J U D G M E N T

The petitioner is an assessee under the provisions of CGST/SGST Act 2017. The challenge in this writ petition is raised against Ext.P1 order in original passed under Sec.73 of the CGST Act. As per the said order, the input tax credit claimed by the petitioner, pertaining to the month of March 2020 was declined on the reason that, the petitioner failed to submit the return within in the period stipulated under Sec.16(4) of the CGST Act. The challenge is raised against Ext.P1 mainly on the ground that, by virtue of Sec.16(5) of the CGST Act, which is newly introduced, the petitioner is entitled to claim the input tax credit.

2. After hearing the learned counsel for the petitioner and the learned Government Pleader, I find merits in the said submission made by the learned counsel for the petitioner. In this case, it is discernible from Ext.P1 order itself that, the petitioner had submitted return for the the March 2020, on 16.05.2021 and therefore, the petitioner had filed the return before the cutoff date, contemplated under Sec.16(5) of the Act. Since the Sec.16(5) contains a non obstante clause as against Sec.16(4), if the tax payer furnishes the returns within the timeline contemplated under Sec.16(5), Sec.16(4) losses its significance. Therefore, an interference is required as the petitioner is entitled to get input tax credit in the light of Sec.16(5).

In such circumstances, the petitioner is entitled to the reliefs. Accordingly, this writ petition is disposed of, quashing Ext.P1, with a direction to the 1^st respondent to reconsider the matter and grant the benefits under Sec.16(5) of the CGST Act, if the petitioner is otherwise entitled to the same. Necessary orders in this regard shall be passed within a period of three months from the date of receipt of copy of this judgment, after affording an opportunity of hearing to the petitioner.