Case Details
Case Title: Subrata Borah v. Union of India & Ors.
Court: Gauhati High Court
Petition No.: WP(C)/1229/2024
Date of Judgment: 03-10-2024
Category of Dispute: Input Tax Credit (ITC) & Limitation under Section 73
Relevant Sections: Section 16(4), 16(5), 16(6), 44, 73, 168A of CGST Act, 2017; Rule 80 of CGST Rules, 2017
Facts (Para 2–10)
The petitioner, engaged in supply of medical equipment under GST registration, was issued a show-cause notice alleging wrongful availment of ITC worth ₹68,07,887/- for FY 2018-19. The department relied on extended limitation notifications issued under Section 168A (due to Covid-19) to sustain action under Section 73. The petitioner challenged these extensions, arguing that Covid-19 ended in 2022 and could no longer justify force majeure conditions for FY 2018-19.
Questions Before Court (Para 8–13)
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Whether notifications extending limitation for FY 2018-19 beyond 31.12.2023 were validly issued under Section 168A on Covid-19 grounds.
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Whether the petitioner’s ITC availment could still be denied in view of subsequent amendments to Section 16 of CGST Act.
Observations (Para 16–21)
The Court noted that Finance (No.2) Act, 2024 inserted subsections (5) and (6) in Section 16, effective retrospectively from 01.07.2017. These provisions expressly allowed ITC availment for FYs 2017-18 to 2020-21 in returns filed up to 30.11.2021, overriding the restrictions of Section 16(4). Since the amendment had retrospective effect, departmental proceedings based on earlier limitation no longer survived.
Judgement (Para 21–23)
The Court held that the petitioner was entitled to ITC subject to conditions of amended Section 16(5) and (6). Consequently, the show-cause notice dated 29.01.2024 was quashed as redundant. The matter was remanded to the jurisdictional officer for consequential action, if necessary.
Table of Earlier Cases Referred
| Case | Court | Ratio / Verdict |
|---|---|---|
| No independent case law cited | – | The judgment turned on statutory amendments and notifications, not precedent. |
Between Fine Lines (Practical Takeaway)
This decision reassures businesses that retrospective GST amendments protecting ITC availment for FYs 2017–18 to 2020–21 override earlier departmental notices. Even if limitation extensions were issued under Covid-19 grounds, once the law itself retrospectively validates ITC, such proceedings cannot survive. Trade must, however, ensure compliance with newly inserted Section 16(5) and (6) conditions.
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