Prabir Kumar Das Vs Assistant Commissioner of State Tax (Calcutta High Court)
Background of the Case
The case Prabir Kumar Das vs Assistant Commissioner of State Tax (Calcutta High Court) revolves around the disallowance of Input Tax Credit (ITC) claimed by the petitioner for the tax period September 2018 to March 2019. The ITC was denied because the petitioner filed GSTR-3B returns beyond the due date stipulated in Section 16(4) of the WSBGST/CGST Act, 2017. The petitioner challenged the order passed under Section 73 of the Act, contending that the new provisions introduced by the West Bengal Goods and Services Tax (Amendment) Act, 2024, should apply.
Legal Arguments and Amendment Impact
The petitioner relied on the amended Section 16(5) of the Act, notified on January 10, 2025, which retrospectively extended the cut-off date for filing returns up to November 30, 2021, for specified financial years, including 2018-19. The petitioner argued that the ITC claim filed within this extended timeline should be allowed. Additionally, the petitioner referenced a circular issued by the GST Policy Wing on October 15, 2024, permitting rectification applications in line with the amendment.
State’s Submission
The State’s counsel acknowledged the amendment but clarified that the rectification could only be considered if the petitioner submitted an appropriate application electronically, as prescribed under the amended rules.
Court’s Observations
The Calcutta High Court noted that the petitioner’s returns for the relevant period were now regularized due to the retrospective amendment. The court held that the petitioner should not be denied the benefit of ITC based on the extended filing timeline under Section 16(5). It directed the petitioner to file a rectification application before the appropriate authority to avail of the benefit.
Conclusion
The court disposed of the writ petition, emphasizing that the petitioner’s ITC claim, previously disallowed due to late filing, is now valid under the amended provisions. This ruling underscores the importance of legislative amendments in rectifying procedural lapses and ensuring fair application of tax laws.
Petitioner was represented by Mr. Himangshu Kumar Ray, and Mr. Subhasis Podder.
FULL TEXT OF THE JUDGMENT/ORDER OF CALCUTTA HIGH COURT
1. Challenging the order passed under Section 73 of the WSBGST /CGST 2017 (hereinafter referred to as the “said Act”) for the tax period from September 2018 to March 2019, whereby the ITC claimed by the petitioner on the basis of the returns filed under Section 39 of the said Act in Form GSTR 3B beyond the due date, had been disallowed, the instant writ petition has been filed.
2. Ray, learned advocate appearing for the petitioner by drawing attention of this Court to the West Bengal Goods and Services Tax (Amendment) Act, 2024 which has been notified in the Kolkata Gazette on 10th January 2025, would submit that sub-Section (5) to Section 16 of the said Act has been inserted with effect from 1St July 2017, whereby the penal effect contained in sub-Section (4) of Section 16 of the said Act in respect of invoices or debit note for supply of goods or services or both pertaining to the financial years 2017-18, 2018-19, 2019-20 and 202021 has been withdrawn, by extending the cut off date for filing of returns upto 30th November 2021.
3. By drawing attention of this Court to the order dated 20th February, 2024 passed under Section 73 of the said Act disclosed by a supplementary affidavit which has been filed in Court today and has been taken on record, he submits that the claim for ITC of the petitioner has been turned down as per Section 16(4) of the said Act. He submits that from the aforesaid order, it would transpire that the returns filed in Form GSTR 3B was filed within the extended cut of date as provided for in Section 16(5) of the said Act. It is submitted that to give effect to the aforesaid provision, the Central Board of Indirect Taxes and Customs, GST Policy Wing by circular dated 15th October, 2024 has permitted the registered tax payers to file appropriate rectification application along with proforma in Annexure – A to the notification dated 8th October, 2024 as such he seeks leave to apply for availing the benefit of the amended provision.
4. Chakraborty, learned Advocate appearing for the State acknowledges the above. He, however, submits that it is only on the basis of an appropriate application to be filed electronically that the petitioner’s case for rectification can be considered.
5. Having heard the learned advocates appearing for the respective parties and noting that in this case, the ITC had been disallowed by reasons of the petitioner filing the return in Form GSTR 3B beyond the due date, and on the basis of insertion of subsection (5) to Section 16, the returns filed by the petitioner which are in respect of the tax period from September 2018 to March 2019 have now been regularized having regard to the new cut of date provided for in Section 16(5) of the said Act, I am of the view that the petitioner cannot be denied the benefit of the aforesaid amendment.
6. Having regard thereto, I permit the petitioner to apply before the appropriate authority by making appropriate rectification application.
7. With the aforesaid observations and directions, the writ petition being WPA 21120 of 2021 is accordingly disposed of.
