In a landmark ruling in favour of Lloyd Insulations India Limited, the Kerala High Court set aside the order denying Input Tax Credit ( ITC ) without considering newly inserted provision under section 16 (5) of Central goods and Service Tax Act ( CGST ), 2017. The Court directed the competent authority to pass fresh orders, after taking note of the provisions contained in Section 16(5) of the CGST/SGST Acts within a period of three months .
The petitioner has approached the Court, being aggrieved by the fact that petitioner has been denied the benefit of input tax credit on account of the provisions contained in Sub Section (4) of Section 16 of the CGST/SGST Acts, for the financial year 2019-20, through order dated 23.08.2024.
Complete Draft Replies of GST ITC Related Notices, Click Here
Counsel appearing for the petitioner submitted that, with the notification of Sub-Section (5) of Section 16 of the CGST/SGST Acts, the petitioner would now be entitled to the benefit of input tax credit which has been denied to the petitioner through order.
The single bench of Justice Gopinath P observed that on account of notification of Sub-Section (5) of Section 16 of the CGST/SGST Acts, the petitioner will be entitled to input tax credit, which has been denied to the petitioner by order.
The Court disposed of the writ petition by setting aside the order to the extent that mit denied input tax credit to the petitioner on account of the provisions of Sub Section (4) of Section 16 of the CGST/SGST Acts.
Complete Draft Replies of GST ITC Related Notices, Click Here
Further directed the competent authority to pass fresh orders, after taking note of the provisions contained in Section 16(5) of the CGST/SGST Acts and after affording an opportunity of hearing to the petitioner, within a period of three months .
Adv Aditya Unnikrishnan, Nivedita A.Kamath, Binisha Baby Saritha K.S and Anil D. Nair appeared for the petitioner. Smt Jasmine M M appeared for the respondent.
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