MELLOW FOUNDATION BUILDERS AND DEVELOPERS PVT LTD. v. THE SUPERINTENDENT, CENTRAL TAX AND CENTRAL EXCISE & ORS.

Introduction

This judgment highlights the impact of the newly inserted Section 16(5) of the CGST Act on pending disputes relating to Input Tax Credit (ITC). The Kerala High Court held that where ITC was denied solely because returns were filed beyond the time limit prescribed under Section 16(4), the authorities must reconsider such denial in light of the retrospective relaxation introduced through Section 16(5). Since the petitioner had filed the relevant returns well before the extended deadline of 30.11.2021, the Court set aside the assessment order and directed fresh adjudication.

Background of the Case

The petitioner, a registered taxpayer under the GST Act, was subjected to proceedings under Section 73 for the financial year 2018-19.