Relief to ITI Ltd: Gauhati HC Orders to Reconsider GST ITC and Related Demands as per Amended S. 16
The bench remitted the matter for reconsidering the demands under amended Section 16.
The Gauhati High Court granted relief to ITI Ltd by setting aside an order of the GST ( Goods and Services tax ) department which had denied Input Tax Credit ( ITC ) and raised certain other demands. The Court directed the matter to be reconsidered afresh in light of the amendments made to Section 16 of the CGST Act, 2017 by the Finance Act, 2024, and after providing an opportunity...
The Gauhati High Court granted relief to ITI Ltd by setting aside an order of the GST ( Goods and Services tax ) department which had denied Input Tax Credit ( ITC ) and raised certain other demands.
The Court directed the matter to be reconsidered afresh in light of the amendments made to Section 16 of the CGST Act, 2017 by the Finance Act, 2024, and after providing an opportunity of hearing to the petitioner.
The petitioner, ITI Ltd, had challenged the impugned order dated 19.11.2024 on the ground that it had been passed without affording a proper hearing. The counsels submitted that with the insertion of sub-section (5) in Section 16, many of the petitioner’s grievances regarding availment of ITC stood substantially resolved. However, the order had also confirmed other demands in violation of principles of natural justice.
On behalf of the respondents, counsel submitted that the Department was agreeable to a remand of the matter so that the claims could be adjudicated afresh in accordance with the CGST Act, including the newly introduced Section 16(5).
The Division Bench of Justice Mridul Kumar Kalita and Justice Rajesh Mazumdar set aside the impugned order dated 19.11.2024, and remitted the matter to the respondent authority for fresh adjudication.
The Court directed that the case be reconsidered in accordance with the amended provisions of Section 16 of the CGST Act, 2017, after granting the petitioner an opportunity of hearing, and that the exercise be completed within two months from the date of production of a certified copy of the order.
Accordingly, the writ petition was disposed of, granting ITI Ltd an opportunity to have its ITC claims and related demands reconsidered under the amended Section 16.
Advocates Puneet Agarwal, Itila Pongen, Nunsang Aier, I Imchen and Ketan Jain appeared for the petitioners.
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