Case Details: Saurabh Agarwalla vs. Union of India [2026] 185 taxmann.com 739 (Gauhati)
Judiciary and Counsel Details
- Anjan Moni Kalita, J.
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R.S. Mishra, Ms B. Sarma & Ms M. Dey, Advs. for the Petitioner.
Facts of the Case
The petitioner, a registered person under the CGST and Assam GST Acts, had availed input tax credit (ITC) for FY 2018–19, which was denied by the department on the ground that it was availed beyond the time limit prescribed under Section 16(4). A show cause notice was issued, and thereafter an Order-in-Original dated 07.02.2024 was passed confirming demand along with interest and penalty. The petitioner challenged the order before the High Court, contending that subsequent insertion of Section 16(5) and 16(6) retrospectively extended the time limit for availing ITC up to 30 November 2021 for the relevant financial years, and thus the denial of ITC was no longer sustainable.
High Court Held
The High Court held that in view of the retrospective amendment inserting Section 16(5), the petitioner was entitled to avail ITC for the relevant period notwithstanding the limitation under Section 16(4), as the extended timeline directly covered the petitioner’s case; consequently, the basis of denial ceased to exist, and the Order-in-Original confirming demand, interest, and penalty was set aside, subject to payment of excess utilized amount and applicable interest within the stipulated time.
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