The petitioner is undertaking a works contract for the state government. It could not file the GSTR-3B return in time for want of receipt of consideration. The input tax credit was disallowed on the ground that the time under section 16(4) of the CGST had lapsed. Accordingly, demand was confirmed. The petitioner had challenged Section 16(4) of the CGST/DGST Act, 2017, and Notification No. 09.2023-CT dated 31.03.2023 and Notification No. 56/2023-CT dated 28.12.2023. The petitioner was aggrieved by the denial of input tax credit by virtue of Section 16(4) of the CGST Act/DGST Act on account of delay.
The Hon’ble Delhi High Court has set aside the order and remanded the matter back to the adjudicating authority. The Revenue agreed that in light of the introduction of section 16(5) vide Finance Act, 2024, the grievance of the petitioner would stand met. Hence, the challenge to the constitutional validity of section 16(4) was not pressed. Accordingly, the petition was disposed of.
HCC Samsung joint venture v. Union of India (W.P. 9737/2024) (Del.HC)
