Section 16(5) prevails over Section 16(4) allowing input tax credit if returns are filed within the cut-off date.

J U D G M E N T

The petitioner is a registered taxpayer under the provisions of the CGST/KSGST Act, 2017. The challenge raised in this writ petition is against Ext.P2 order passed under Section 73 of the CGST/KSGST Act, by which the input tax credit claimed by the petitioner for the period from April 2019 to March 2020 was rejected on the reason that, the petitioner failed to submit the returns within the period stipulated in Section 16(4) of the CGST/KSGST Act.

2. The challenge is raised by the petitioner mainly in the light of Section 16(5) of the CGST/KSGST Act, which provides that, in case the taxpayer is furnishing the returns within the cut-off date contemplated therein, which is 30.11.2021, such taxpayer shall be eligible to claim that tax well. In this case, on going through Ext.P2 impugned order itself, it is clear that, the petitioner had submitted the returns for the relevant months on 01.02.2021. In such circumstances, the petitioner had fulfilled the statutory requirement contemplated under Section 16(5) of CGST/KSGST Act, and hence the petitioner is entitled to the benefit of input tax credit for the period referred above. This is particularly because, Section 16(5) of the CGST/KSGST Act starts with a non-obstante clause as regards Section 16(4) and hence, in case the taxpayer is furnishing the returns within the cut-off date contemplated therein, the timeline contemplated under Section 16(4) would lose 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 benefit to the petitioner under Section 16(5) CGST/KSGST Act, if the petitioner is otherwise eligible to the same.