GST ITC Claims Made Before 30.11.2021 Valid u/s 16(5): Madras HC Quashes S. 73 Order, Clarifies Assessee Barred from Claiming Refund of Paid Tax Amount [Read Order]
The Court made it clear that if any part of the disputed tax amount had already been paid by the petitioner, they would not be entitled to a refund of such payment.
![GST ITC Claims Made Before 30.11.2021 Valid u/s 16(5): Madras HC Quashes S. 73 Order, Clarifies Assessee Barred from Claiming Refund of Paid Tax Amount [Read Order]](https://images.taxscan.in/h-upload/2025/07/21/2066735-gst-itc-gst-act-madrashc-taxscan.webp "GST ITC Claims Made Before 30.11.2021 Valid u/s 16(5): Madras HC Quashes S. 73 Order, Clarifies Assessee Barred from Claiming Refund of Paid Tax Amount [Read Order]")
In a recent ruling, the Madras High Court has quashed assessment orders passed under Section 73 of the Tamil Nadu GST Act, 2017, pertaining to the denial of belated input tax credit ( ITC ) claims. However, the court also clarified that the assessee is barred from claiming refund of any disputed tax paid.
The Court held that ITC claims made before 30.11.2021 are valid in light of the newly inserted Section 16(5) of the CGST Act, introduced by Section 118 of the Finance Act, 2024.
The petitioner, Sunder and Company had approached the Court challenging the assessment orders passed on the grounds that their ITC claims were disallowed for being filed beyond the time limit specified under Section 16(4) of the GST Act.
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However, both the petitioner-assesses and the State’s Commercial Taxes Department agreed that the claims related to the financial years 2017-18 and 2018-19 and were filed prior to 30.11.2021.
The Court stated that the petitioners are entitled to the requested relief, citing the recently enacted Section 16(5), which offers a relaxation for ITC claims filed up until November 30, 2021.
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Additionally, a previous ruling in W.P. No. 3457 of 2022 batch, issued by the same Court on July 20, 2025, was cited, in which the assessee was found to have won on the same issues.
Consequently, Justices Anita Sumanth and Justice N. Senthilkumar quashed the impugned assessment orders issued under Section 73, thereby allowing the writ petitions.
However, the Court made it clear that if any part of the disputed tax amount had already been paid by the petitioner, they would not be entitled to a refund of such payment. This limitation complies with Circular No. 237/31/2024-GST dated 15.10.2024, which expressly prohibits refunds of taxes that have already been paid in these circumstances.
The Court made it clear that if any part of the disputed tax amount had already been paid by the petitioner, they would not be entitled to a refund of such payment.
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