The petitioner is undertaking works contract for the State Government. It could not file 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 the Section 16(4) of the CGST/DGST Act, 2017 and the Notification No. 09.2023-CT dated 31.03.2023 and the 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 the 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 introduction of section 16(5) vide Finance Act, 2024, the grievance of the petitioner would stand met. Hence, challenge to the constitutional validity of section 16(4) was not pressed. Accordingly, the petition was disposed off.
HCC Samsung joint venture v. Union of India (W.P. 9737/2024) (Del.HC)
