M/s SREYA SOLAR AND ELECTRICALS v. SUPERINTENDENT CENTRAL TAX AND CENTRAL EXCISE KOZHIKODE RANGE II & ORS.

Introduction

This judgment of the Kerala High Court reiterates the legal position that the beneficial provisions of Section 16(5) of the CGST Act override the limitation contained in Section 16(4). The Court held that where a registered person has furnished the relevant GST returns before the statutory cut-off date prescribed under Section 16(5), the Input Tax Credit (ITC) cannot be denied merely because the returns were filed beyond the original timeline under Section 16(4).

The Court observed that the petitioner had filed the returns on 19.12.2019, which was well before the cut-off date of 30.11.2021 prescribed under Section 16(5). Consequently, the denial of ITC solely on the basis of Section 16(4) was held to be unsustainable. The impugned order was quashed, and the matter was remanded to the proper officer for reconsideration in accordance with Section 16(5).