Case Title: M/s MMIL v. Commercial Tax Officer & Others
Court: High Court of Karnataka at Bengaluru
Petition No.: Writ Petition No. 7513 of 2024 (T-RES)
Date of Judgment: 3 December 2024
Category of Dispute: Input Tax Credit – Time Limit for Availment
Relevant Sections: Section 73 of the CGST/KGST Acts, 2017; Section 118 of the Finance Act, 2024; Rule 36 of CGST Rules, 2017
Facts (Paras 1–2)
The petitioner, M/s MMIL, a proprietorship concern registered under the CGST and KGST Acts, had delayed filing of GST returns and corresponding Input Tax Credit (ITC) claims for FY 2018–19. Owing to such delay, the jurisdictional officer issued a show-cause notice under Section 73 and subsequently passed adverse assessment orders dated 29.04.2023 and 09.06.2023, disallowing ITC. Aggrieved, the petitioner approached the High Court seeking quashing of these orders.
During the hearing, the petitioner highlighted that Section 118 of the Finance Act, 2024 had retrospectively extended the time limit for filing GST returns and availing ITC for past periods. The petitioner contended that this statutory amendment, along with follow-up circulars from the GST Council and State Government, entitled it to reconsideration of the case. It was further submitted that similar reliefs had been granted by co-ordinate benches in W.P. No. 6138/2020 and W.P. No. 29139/2024.
Questions Before the Court (Para 2)
Whether the benefit of the Finance Act, 2024 amendment (Section 118) extending the timeline for ITC availment should be extended to the petitioner by setting aside the earlier orders and restoring the matter to the stage of show-cause notice?
Court’s Observations (Paras 3–4)
The learned High Court Government Pleader raised no objection to the petitioner’s request. The Court observed that several coordinate benches had already remanded similar cases to the show-cause notice stage to allow assessees the opportunity to re-avail ITC benefits in light of the amended law. The Court saw no reason to deny parity to the present petitioner, as the principle of equality before law warranted consistent treatment.
Judgment (Para 5)
The High Court set aside the impugned orders dated 29.04.2023 and 09.06.2023, and relegated the petitioner to the stage of the show-cause notice dated 07.10.2023.
It directed:
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The petitioner shall file a detailed reply within one month.
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The respondents shall implement the amended provisions of the Finance Act, 2024, along with subsequent circulars, while reconsidering the case.
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A fresh speaking order shall be passed within two months thereafter.
The writ petition was thus disposed of, and all interim applications stood closed.
Summary of Cases Referred
| Case No. | Court | Issue | Outcome |
|---|---|---|---|
| W.P. No. 6138/2020 | Karnataka High Court | Delay in ITC claim | Matter remanded to apply extended ITC timelines |
| W.P. No. 29139/2024 | Karnataka High Court | Availment of ITC beyond earlier limitation | Assessment order set aside; remand granted under amended Finance Act provisions |
Between Fine Lines
This decision confirms that taxpayers whose ITC was earlier denied for delay in return filing or ITC claim can now seek reconsideration based on Section 118 of the Finance Act, 2024, which extended timelines for filing and credit availment. It reaffirms judicial alignment with legislative intent to liberalize procedural limits and ensure substantive credit entitlement is not lost due to earlier cut-off dates. Businesses should proactively file representations citing this amendment to reopen or regularize past ITC claims.
Disclaimer – “The above summary is for academic purpose only; not formal legal opinion. Seek professional opinion before application. Author or publisher or website shall not be responsible for any usage in any form.”
