Case Of: M/s. Rivera Enterprises
Issued By: Madras High Court
Order No: WP No. 16289 of 2025 & WMP No 18417 of 2025
Date: 2nd July 2025
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The petitioner challenged a recovery order dated April 29, 2024, invoking amended Sections 16(4) and newly inserted 16(5) of the CGST Act, which extended timelines for availing ITC retrospectively.
It was submitted that the issue stood covered by an earlier judgment dated October 17, 2024 (W.P. No. 25081 of 2024), where similar ITC reversals
due to delayed GSTR-3B filing had been set aside.
In that batch, delays were attributed to uncontrollable factors such as COVID-19-related disruptions, health issues, and fire accidents, resulting in reversal of ITC and initiation of recovery.
Legislative amendments via Finance Act (No.2) of 2024 and Circular No. 237/31/2024-GST were cited, asserting that Section 16(5) permits ITC claims
for FY 2017–2021 if returns were filed by November 30, 2021.
The Court noted that Section 16(5) had retrospective effect from July 1, 2017, and prevailed over the time restriction under Section 16(4), validating the petitioner’s ITC claim timeline.
The respondent conceded that the case was squarely covered by the earlier ruling, leading the Court to adopt the same legal position without deviation.
The impugned recovery order was quashed, and the department was restrained from initiating or continuing recovery proceedings based on timebarred ITC disallowance.
The Court directed release of bank accounts, cessation of recovery actions, and allowed utilization or adjustment of any tax amounts deposited in relation to the impugned order.