Any Relief Measure for Show casue Notice based on Section 16(4) ?

ITC / Input 170 views 4 replies

HI,

Are there any relief measures in favour of the taxpayer who has received notice for the FY 2019-20 i.r.t 16(4) of the CGST Act, 2017?

The taxpayer has filed GSTR3Bs, for the FY 2019-20, in August 2021.

Please guide if there are any case laws/circulars/notifications in favour of taxpayer.

Thanks in advance.

Replies (4)
Hello,

The case under Section 16(4) will not be dropped at the initial level. You will need to file an appeal and go to the High Court. For your case, I suggest that you can take the plea of COVID-19 and I also suggest some judgments that you can refer to.

*1* judgement of the Hon'ble Gujarat High Court in the case of "Aap & Company, Chartered Accountants Through Authorized Partners vs. Union of India, [R/Special Civil Application No. 18962 of 2018]".
It is clear from the judgement that GSTR-3B was a temporary arrangement introduced to alleviate the burden on taxpayers due to technical glitches in the GSTN portal. It was not intended as a substitute for GSTR-3. The Government's subsequent notifications extending the due date of filing GSTR-3 and the retrospective amendment to recognize GSTR-3B as a return under Section 39 were not in line with the original legislative intent.

*2* judgment in the case of Tvl. Kavin HP Gas Gramin Vitrak vs. The Commissioner of Commercial Taxes, bearing WP(MD) Nos. 7173 and 7174 of 2023 and WMP(MD) Nos. 6764 and 6765 of 2023, the Honโ€™ble Madras High Court held that in the absence of any enabling mechanism, the assessee cannot be prejudiced by not granting ITC.

Section 16(4) of CGST Act, 2017 – A Critical Analysis CA (Dr) Ayush Saraf, Guwahati ON  20 May 2023 
 

Recent kerala high.court judgement trade link vs union of india
In Kerala h c 2 months extn given retrospectively. 30 nov.


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