In a recent case, the Kerala High Court set aside order denying InputTax Credit ( ITC ) under Central Goods and Service Tax ( CGST ) Act, 2017 in consideration of notification on provision under section 16(5) of the act.
Reinstate Renovation Solutions, 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 20192020, through order dated 22.08.2024.
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.
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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 to the extent that it denied input tax credit to the petitioner on account of the provisions of Sub Section (4) of Section 16 of the CGST/SGST Acts. It was directed to the competent authority to pass fresh orders, after taking note of the provisions contained in Section 16(5) of the CGST/SGST Acts after affording an opportunity of hearing to the petitioner, within a period of three months from the date of receipt of a certified copy of the judgment.
Adv Santhosh P.Abraham appeared on behalf of the petitioner. Advs.V Girish Kumar and Jasmin M M apperaed for the respondent.
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