Case Title: Multi Services, Christian Sahi, Cuttack v. Central Board of Indirect Taxes and Customs (CBIC), New Delhi & Others
Court: High Court of Orissa at Cuttack
Petition No.: W.P.(C) No. 24996 of 2024
Date of Judgment: 28 October 2024
Category of Dispute: Input Tax Credit – Time Limit for Availment
Relevant Sections: Section 16(4) and newly inserted Section 16(5) of the CGST Act, 2017; Section 73 of the CGST/OGST Acts; Section 118 of Finance Act, 2024; Section 148 of the CGST Act
Facts (Para 1–2)
The petitioner, Multi Services, challenged an order-in-original dated 8 April 2024 issued pursuant to a demand-cum-show-cause notice dated 21 December 2023 under Section 73 of the CGST and OGST Acts.
The impugned order disallowed ITC solely on the ground of delay in filing GSTR-3B. The petitioner contended that the Finance Act, 2024 (Section 118) inserted Section 16(5) extending the time for filing returns for FY 2018-19 up to 30 November 2021, and since their GSTR-3B was filed on 26 November 2019, the credit was well within the extended time. A Gazette notification dated 27 September 2024 brought the amendment into effect.
Questions Before the Court
Whether the petitioner could claim the benefit of the retrospective extension of ITC time limits under the Finance Act, 2024 despite not having filed a statutory appeal, and whether the impugned order disallowing ITC for delay could be quashed in writ jurisdiction.
Observations (Para 3–4)
The Department placed reliance on CBIC Circular dated 15 October 2024, clause 3.5, which prescribed that where no appeal had been filed, the assessee must apply for rectification under Section 148 within six months from the date of notification (27 September 2024).
The Court observed that the circular was issued after the writ petition was filed, and since a departmental remedy is now available for rectification, the petitioner must first avail that mechanism. The time limit under the circular was still open.
Judgment (Para 4–5)
The High Court declined to adjudicate the merits and instead disposed of the writ petition, directing the petitioner to apply for rectification under Section 148 in terms of CBIC’s circular dated 15 October 2024. The Court noted that this would enable departmental correction of the impugned order in line with the amended Section 16(5) and Section 118 of the Finance Act 2024.
Summary of Cases Referred
| Case | Issue / Principle | Verdict / Relevance |
|---|---|---|
| Multi Services v. CBIC (this case) | ITC disallowance for delayed GSTR-3B vs. retrospective extension by Finance Act 2024 | Writ disposed of; petitioner directed to seek rectification under Sec. 148 as per CBIC Circular 15-10-2024. |
Between Fine Lines
This ruling clarifies that taxpayers who missed the earlier ITC timelines but now fall within the extended limits under the Finance Act 2024 cannot seek relief directly through writ petitions if no appeal is filed. Instead, they must apply for rectification under Section 148 within six months of the notification, aligning administrative correction with the statutory amendment.
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.”
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