Poothankara Anoopkumar v. The Superintendent & Others

Introduction

This judgment of the Kerala High Court is another important ruling interpreting the beneficial provisions introduced through Section 16(5) of the CGST Act. The Court held that where a registered person has furnished the pending returns before the statutory cut-off date prescribed under Section 16(5), the restriction contained in Section 16(4) cannot be invoked to deny Input Tax Credit (ITC). By virtue of the overriding effect of Section 16(5), taxpayers who satisfy the conditions prescribed therein are entitled to restoration of ITC, notwithstanding the original limitation under Section 16(4).

The Court observed that the records themselves established that the petitioner had filed the relevant returns well before the statutory cut-off date of 30.11.2021. Accordingly, 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 remitted to the adjudicating authority for fresh consideration by extending the benefit of Section 16(5), if the petitioner was otherwise eligible.