M/s.Maharaja Furniture vs The Assistant Commissioner (ST)

WP Nos. 44618 and 44623 of 2026
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 02-11-2026
CORAM
THE HON'BLE MR JUSTICE KRISHNAN RAMASAMY
WP Nos. 44618 and 44623 of 2026
and WMP Nos.50088, 50090, 50097 and 50098 of 2026
CNR: {HCMA012517762026}
M/s.Maharaja Furniture
Rep. by its Partner, Mohamed Rafi,
No. 45, 4th Cross Street,
Arulanandha Nagar, VOC Nagar,
Thanjavur 613007
..Petitioner
in both W.Ps.
Vs
The Assistant Commissioner (ST)
Hasthampatty Assessment Circle,
3rd Floor, Integrated Commercial Taxes Building,
Pitchards Road, Hasthampatty,
Salem - 636007
..Respondent
in both W.Ps.
WP No. 44618 of 2026
PRAYER: The Writ Petition is filed under Article 226 of the Constitution of
India seeking the issuance of a Writ of Certiorari call for the records pertaining
to the impugned assessment order in Form DRC-07 order dated 30.06.2023
bearing Ref. No. ZD330623138533K, passed by the Respondent and the
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WP Nos. 44618 and 44623 of 2026
consequential property attachment notice dated 04.09.2025 bearing Na.Ka.
302/2024/A2, issued by the respondent and quash the same.
WP No. 44623 of 2026
PRAYER: The Writ Petition is filed under Article 226 of the Constitution of
India seeking the issuance of a Writ of Certiorari to call for the records
pertaining to the impugned assessment order in Form DRC-07 order dated
30.06.2023, bearing Ref. No. ZD330623138526F, passed by the respondent and
quash the same
For Petitioner(s):
Mr. M.A.Abdul Razak
in both W.Ps.
For Respondent(s):
Ms. Amirta Poonkodi Dinakaran
Additional Government Pleader (Taxes)
in both W.Ps.
COMMON ORDER
The present Writ Petitions have been filed by the petitioner/taxpayer, who
is registered dealer on the files of the respondent-Department under the
provisions of the Goods and Service Tax Act, 2017 (GST Act)/ Central Goods
and Services Tax Act ( CGST Act) as the case may be, challenging the orders
passed by the respondent-Department, whereby, their claim of ITC was
reversed/negatived and consequently, the petitioner has been directed to pay
tax/penalty/interest.
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WP Nos. 44618 and 44623 of 2026
2. When these Writ Petitions are taken up for hearing, the respective
learned counsel for the petitioner and the respondent, would submit that the
issue involved in the present Writ Petitions, have been squarely covered by the
common order of this Court, dated 17.10.2024 passed in W.P.Nos.25081 of
2023, etc., batch, wherein, this Court has categorically held in paragraphs 9 to
12 as under:
“9. The petitioners in all these Writ Petitions are registered
dealers on the files of the respondent-Department under the
provisions of the Goods and Service Tax Act, 2017/CGST Act
2017. Though the petitioners have filed GSTR-1 returns in
time, however, insofar as claim of ITC is concerned, since the
petitioners were faced with certain difficulties, such as
Financial constraints (as there was complete lock down due
to outbreak Covid-19) health related ailments, fire accidents,
they were unable to file GSTR-3B returns, which prompted
them not raising their claim ITC in time before the prescribed
date. Whereas, the respondent-Department without
considering such vital aspects and that reasons for the delay
is not deliberate, issued the show cause notices to the
petitioners, proposing to reverse the ITC availed and went to
the extreme level of confirming the proposals contained in the
show cause notices by passing the impugned orders,whereby,
the claim made by the petitioners for ITC was reversed and
the petitioners have been directed to tax/penalty/interest.
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WP Nos. 44618 and 44623 of 2026
Aggrieved against the impugned orders, the petitioners are
before this Court by way of present Writ Petitions seeking for
setting aside the impugned orders.
10. After the filing of these Writ Petitions, certain
rd
development took place, i.e. that 53 GST Council Meeting
was held on 22.06.2024, and during the said Meeting, the
GST Council recommended for extension of the deadline for
availing ITC on any invoice or debit note under Section 16(4)
of the CGST Act and this extension would be applicable to
any GSTR-3B returns filed for the Fys 2017-18, 2018-19,
2019-20 and 2020-21 with a new deadline deemed to be as
''30.11.2021'', to which, the Presidential Assent was also
obtained by the Government of India on 16.08.2024, whereby,
the financial proposals of the Central Government for the
Financial Year 2024-25 was given effect to vide Finance Act,
(No.2) of 2024, and in view of the aforesaid enactment, the
Ministry of Finance (Department of Revenue) Central Board
of Indirect Taxes and Customs, issued a Notification, bearing
No.17 of 2024-Central Tax, dated 27.09.2024, pursuant to
which, a Circular No.237/31/2024-GST was issued by the
Central Board of Indirect Taxes and Customs, which was
addressed to all the Principal Chief Commissioners /Chief
Commissioners/Principal Commissioners/Commissioners of
Central Tax (All), thereby, clarifying the issues regarding
implementation of provision of sub-section (5) and sub-
section (6) in Section 16 of CGST Act, 2017, the impugned
orders are no longer sustainable and liable to be quashed. In
this context, it would be apposite to refer to both Section
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WP Nos. 44618 and 44623 of 2026
16(4) of the CGST Act, 2017, as well as amendment made to
Section 16 (4) by interpolations of sub-sections 16 (5) and
(6), and by insertion of sub-section (5) to Section 16, which
are extracted herein under:-
Section 16 (4)
''A registered person shall not be entitled to take input tax
credit in respect of any invoice or debit note for supply of
goods or services or both after the thirtieth day of November
following the end of financial year to which such invoice or
debit note pertains or furnishing of the relevant annual
return, whichever is earlier.''
Section 16 (5) :-
''Notwithstanding anything contained in sub-section (4), in
respect of an invoice or debit note for supply of goods or
services or both pertaining to the Financial Years 2017-18,
2018-19, 2019-20 and 2020-21, the registered persons shall
be entitled to take input tax credit in any return under section
39 which is filed upto the thirtieth day of November, 2021.''
10.1.Thus, a perusal of above Section 16 (5) makes it clear
that 'notwithstanding anything contained in sub-section 4,
referred to above, in respect of any invoice or debit note for
supply of goods or services or both pertaining to the Fys
2017-18 to 2020-21, the registered persons shall be entitled
to take ITC in any return under section 39 which is filed upto
the 30th day of November, 2021.
10.2 Thus, this Court considering the fact that the issue
involved in all these Writ Petitions is only with regard to the
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WP Nos. 44618 and 44623 of 2026
availment of ITC, which is barred by limitation in terms of
Section 16 (4) of the CGST Act, and in the light of the
subsequent developments took place, whereby, Section 16 of
the CGST Act was amended and sub-section (5) was inserted
to Section 16, which came into force with retrospective effect
from 01.07.2017, the petitioners are entitled to avail ITC in
respect of GSTR-3B filed in respect of FYs 2017-18, 2018-19,
2019-20 and 2020-21 as the case may be, on or before
30.11.2021, is inclined to quash the impugned orders.
11. Accordingly, this Court passes the following orders.
i) The orders impugned in all Writ Petitions are quashed
insofar as it relates to the claim made by the petitioners for
ITC which is barred by limitation in terms of Section 16 (4) of
the CGST Act, 2017 but, within the period prescribed in terms
of Section 16 (5) of the said Act.
ii) Therefore, the respondent-Department is restrained from
initiating any proceedings against the petitioners by virtue of
the impugned orders based on the issue of limitation.
iii) In view of the fact that the impugned orders are quashed,
the respondent-Department is directed to take immediate
steps towards de-freezure of the concerned petitioners bank
accounts, which have been freezed in furtherance of the
impugned orders, by sending intimation to the concerned
bankers.
iv) In the event, in the interregnum, i.e. during the pendency
of these Writ Petitions, if any orders are proposed to be
passed towards recovery, same shall be dropped immediately
upon production of the order copy by the petitioners, in
whichever case, where, there is no interim order.
v) It is also made clear that if at all, if there is any tax
amounts were collected from the petitioners based on the
impugned assessment orders from the cash ledgers/credit
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WP Nos. 44618 and 44623 of 2026
ledgers of the petitioners concerned, the same shall be
refunded to them or by means of orders of this Court or even
in the absence of any order from this Court, if any amount is
deposited either in the cash ledgers/credit ledgers of the
petitioners concerned, the same is permitted to be
utilized/adjusted by the petitioners towards payment of future
tax.
vi) Insofar as the apprehension expressed by the learned
Additional Advocate General for the respondent-Department
that in certain Writ Petition apart from the issue on
limitation, challenges have also been made to the order
related to issues such as discrepancies in availing the
ITC/wrong availment of ITC/excess claim of ITC/Fake ITC
claim, as the case may be, or such other issues, liberty is be
granted to the respondent-Department to proceed against the
assessees/petitioners in furtherance of the impugned orders in
accordance with law.
12. In the result, all the Writ Petitions are allowed on the
aforesaid terms. No costs. Consequently, connected
Miscellaneous Petitions are closed”
3. Therefore, the learned counsel for the petitioner would submit that the
above said order will hold good for the present Writ Petitions also and hence,
prayed to dispose of the Writ Petitions. The learned counsel appearing for the
respondent would fairly accede to the same.
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WP Nos. 44618 and 44623 of 2026
4. In view of the above, this Court passes the following:-
i) The impugned orders dated 30.06.2023 are
quashed insofar as it relates to the claim made by the
petitioner for ITC which is barred by limitation in terms of
Section 16 (4) of the CGST Act, 2017 but, within the period
prescribed in terms of Section 16 (5) of the said Act.
ii) Therefore, the respondent-Department is
restrained from initiating any proceedings against the
petitioners by virtue of the impugned order based on the issue
of limitation.
iii) In view of the fact that the impugned orders are
quashed, the respondent-Department is directed to de-freezure
of the concerned petitioner bank account, if any, which have
been freezed in furtherance of the impugned order, by sending
intimation to the concerned bankers.
iv) In the event, in the interregnum, i.e. during the
pendency of this Writ Petition, if any orders are proposed to
be passed towards recovery, same shall be dropped
immediately upon production of the order copy by the
petitioners, in whichever case, where, there is no interim
order.
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WP Nos. 44618 and 44623 of 2026
v) It is also made clear that if at all, if there is any
tax amounts were collected from the petitioner based on the
impugned assessment order from the cash ledgers/credit
ledgers of the petitioner concerned, the same shall be
refunded to them or by means of orders of this Court or even
in the absence of any order from this Court, if any amount is
deposited either in the cash ledgers/credit ledgers of the
petitioner concerned, the same is permitted to be
utilized/adjusted by the petitioners towards payment of future
tax.
vi) If there is any challenge related to issues such as
discrepancies in availing the ITC/wrong availment of
ITC/excess claim of ITC/Fake ITC claim, as the case may be,
or such other issues, liberty is be granted to the respondent-
Department to proceed against the assessee/petitioner in
furtherance of the impugned order in accordance with law.
5. Accordingly, these Writ Petitions are allowed on the aforesaid terms.
There shall be no order as to costs. W.M.P.Nos.50088 and 50097 of 2026 filed
to dispense with the production of original impugned orders, are allowed.
Consequently, the connected Miscellaneous Petitions are closed.
02-11-2026
Asi
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WP Nos. 44618 and 44623 of 2026
KRISHNAN RAMASAMY, J.
Asi
To
The Assistant Commissioner (ST)
Hasthampatty Assessment Circle,
rd
3 Floor, Integrated Commercial Taxes Building,
Pitchards Road, Hasthampatty,
Salem - 636007
WP Nos. 44618 and 44623 of 2026
and WMP Nos.50088, 50090, 50097 and 50098 of 2026
02-11-2026
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