Case Title: M/s Rajmal Indermal (Prop. Shri Arun Kumar Chordia) v. Union of India & Others
Court: High Court of Madhya Pradesh, Indore Bench
Petition No.: Writ Petition No. 29665 of 2023
Category: Input Tax Credit
Date of Judgment: 14 July 2025
Relevant Sections: Section 16(4) and Section 39 of the CGST Act, 2017; Section 118 of Finance (No.2) Act, 2024; Notification No. 17/2024–Central Tax dated 27.09.2024
Facts (Paras 1–2)
The petitioner, M/s Rajmal Indermal, challenged the Order-in-Original dated 21.08.2023 by which the adjudicating authority upheld GST demand and penalty on the ground that GSTR-3B returns for FYs 2017-18 to 2020-21 were filed after the due date prescribed under Section 39 of the CGST Act. The department denied Input Tax Credit (ITC) considering the filing beyond the September deadline following each financial year.
Questions for Consideration
Whether, after the amendment introduced through Section 118 of the Finance (No.2) Act, 2024 and Notification No. 17/2024–CT dated 27.09.2024, extending the permissible period for claiming ITC up to 30 November 2021, the earlier demand order denying ITC remained legally sustainable.
Observations (Paras 2–5)
The petitioner relied on the insertion of sub-sections (5) and (6) to Section 16 vide the Finance (No.2) Act, 2024, which explicitly allowed availing of ITC for invoices pertaining to FYs 2017-18 through 2020-21 in any return filed up to 30 November 2021. The Court noted that the petitioner had indeed filed GSTR-3B returns within this extended time limit.
Counsel for the respondents fairly conceded that the matter required fresh examination in light of this legislative change.
Judgment (Paras 5–6)
The Division Bench comprising Justice Vivek Rusia and Justice Binod Kumar Dwivedi held that, given the subsequent statutory extension, the impugned Order-in-Original could not stand without reconsideration. Accordingly, the Court set aside the impugned order and remanded the matter to the Superintendent, CGST & Central Excise, Range-I, Division Ratlam for a fresh decision consistent with the new legal provisions.
Summary of Cases Referred
| Case / Reference | Key Issue / Verdict | Relevance |
|---|---|---|
| Section 118, Finance (No.2) Act, 2024 | Extended ITC claim period up to 30.11.2021 for FYs 2017-18 to 2020-21 | Formed statutory basis for remand |
| Notification No. 17/2024–CT, dated 27.09.2024 | Operationalized the Finance Act amendment | Enabled reconsideration of ITC claim validity |
Between Fine Lines
For taxpayers, this judgment underscores that past ITC denials for FY 2017-18 to 2020-21 based on late filing of returns can now be reconsidered if returns were filed before 30 November 2021. It effectively allows businesses to seek review or rectification of earlier adverse orders grounded solely on time-barred ITC claims.
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