Case Details: Asian Lifts and Escalator Pvt. Ltd. vs. Assistant Commissioner of CGST & Central Excise, Chennai (2026) 40 Centax 162 (Mad.)
Judiciary and Counsel Details
- C. Saravanan, J.
- Shri G.Natarajan, for the Petitioner.
- Shri Sai Srujan Tayi, Senior Standing Counsel, for the Respondent.
Facts of the Case
The petitioner, a registered person under GST, had availed input tax credit (ITC) belatedly, following which proceedings were initiated by the jurisdictional officer under CGST to treat such ITC as ineligible solely on the ground of breach of the prescribed time limit. The Order-in-Original confirmed denial of ITC along with tax, interest, and penalty. A writ petition was filed challenging such denial, contending that ITC was denied only on account of delay and not on merits and relied upon the retrospective amendment introduced by the Finance (No. 2) Act, 2024, which removed the time bar on availment of ITC with effect from 01-07-2017. The matter was accordingly placed before the High Court.
High Court Held
The High Court held that the retrospective amendment to Section 16 of the CGST Act and Tamil Nadu GST Act by the Finance (No. 2) Act, 2024, the bar on belated availment of ITC stood removed from 01-07-2017. Therefore, ITC could not be denied solely on the ground of delay. It was observed that substantial ITC already availed cannot be disallowed merely due to lapse of time, and such denial was legally unsustainable. It was clarified that eligibility of ITC must still be examined with reference to other statutory conditions under Section 16 of CGST Act, which require factual verification. The impugned order was set aside and the matter was remanded to the adjudicating authority for fresh consideration on merits after granting opportunity of hearing.
