Kerala HC Disposes of Writ Petition With Liberty to Petitioner to Approach GST Appellate Authority [Read Order]

The Kerala High Court disposed of the writ petition with liberty to the petitioner to approach the Goods and Service Tax (GST) Appellate authority. Parameswaran E C, the petitioner seeking to quash orders passed by the 1st respondent whereby the assessment order has been finalised. The total tax liability under CGST, SGST along with CESS, interest and penalty has been determined to be 2,22,38,370/-.  Vide an order, the rectification application has been rejected on the ground that the petitioner failed to avail the entire Input Tax Credit (ITC) on a self-assessment basis through his returns before the last date for availment of ITC under Section 16 (4) of the CGST Act, 2017 read with Section 20 of the IGST Act, 2017 and Section 11 of the Goods and Services Tax (Compensation to States) Act, 2017.  Since the last date of availment of ITC in respect of the financial year 2017-18 was 20th April 2019, which was subsequently extended to 30.09.2019 and therefore, the petitioner was held not eligible for unutilised ITC.

It was held that the petitioner is eligible only for the credit of Rs. 83,77,861.17/as ITC under Compensation CESS, rest will lapse.  A single bench of Justice Dinesh Kumar Singh observed that against the orders impugned in the writ petition there is a remedy of appeal under Section 107 of the Central Goods and Services Tax Act, 2017.  The limitation for filing of appeal in respect of the financial years 2017-18 and 2018-19 has been extended up to 31.01.2024 vide the notification No.53/2023 dated 02.11.2023 issued by the Central Board of Indirect Taxes and Customs. The Court disposed of the writ petition with liberty to the petitioner to approach the Appellate Authority under the provisions of the CGST/SGST Act, 2017 against the orders impugned in this writ petition within a month.

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