ITC claim within sec. 16(5) period cannot be denied as time-barred under sec. 16(4) impugned orders quashed { Malligai Agencies vs. Assistant Commissioner of GST and Central Excise [2026] 183 taxmann.com 607 (Madras High Court)}
Facts
- The petitioner claimed Input Tax Credit within the extended time limit prescribed under Section 16(5) of the CGST Act.
- The department denied the ITC by invoking Section 16(4), treating the claim as time-barred and passed adverse orders.
- The assessee challenged the denial contending that Section 16(5) being a special provision, overrides Section 16(4).
Issue
Whether ITC claimed within the time period prescribed under Section 16(5) can still be denied as time-barred under Section 16(4).
Held
- The Madras High Court held that ITC claimed within the time limit specified under Section 16(5) cannot be denied by applying Section 16(4).
- Section 16(5) was held to be a special enabling provision and once its conditions are satisfied, denial of ITC on limitation grounds is unsustainable.
- Accordingly, the impugned orders were quashed, and relief was granted to the assessee.
