Kerala HC Allows Writ Withdrawal Due to Extension of Time Limit for GST Appeal

The recent ruling by the Kerala High Court in the matter of Tyre India Spare India vs State Tax Officer examined the constitutional validity of Section 16(4) of the GST Act. The petitioner contested the denial of the Input Tax Credit (ITC) and the application of Section 16(4) in certain scenarios, seeking various reliefs. This analysis delves into the pivotal elements of the case and the court’s ultimate decision.

Detailed Analysis

The petitioner expressed reservations regarding the legality, arbitrariness, and constitutionality of Section 16(4) in both the CGST Act and the Kerala State GST Act. The crux of the argument revolved around the assertion that this section prohibits ITC if not claimed within the stipulated deadline for filing the return by the end of September following the conclusion of the financial year or the submission of the annual return, whichever comes first.

Read Also: Input Tax Credit Guide Under GST: Calculation with Examples

Furthermore, the petitioner contended that the due dates specified in Section 16(4) should be automatically extended by specific notifications, leading to the nullification of the contested assessment order. However, during the proceedings, the petitioner informed the court about the extended time limit for appealing against the assessment order, prompting the withdrawal of the writ petition.

Considering the petitioner’s submission, the court dismissed the writ petition as withdrawn, granting the liberty to appeal against the assessment order under Section 107 of the CGST/KGST Act by the extended deadline of 31.01.2024.

In conclusion, the Tyre India Spare India vs State Tax Officer case highlights the importance of comprehending statutory timelines and availing oneself of the available remedies.

Despite the petitioner’s withdrawal of the writ petition, the judgment underscores the opportunity to pursue an appeal within the extended time limit. This analysis sheds light on the court’s decision, providing clarity on the ramifications of Section 16(4) of the GST Act within the context of the petitioner’s arguments.