Impact of Retrospective GST Amendments on Belated ITC Claims: Madras High Court Remands Dispute for Fresh Adjudication

In a highly significant judicial development, the Madras High Court has provided substantial relief to an assessee facing tax demands over delayed Input Tax Credit (ITC) claims. The landmark ruling in the matter of Om Sakthi Maligai Vs Superintendent of GST & Central Excise highlights the profound impact of recent legislative changes introduced to cure procedural delays in claiming ITC. By taking judicial notice of the newly enacted retrospective provisions, the Court has effectively dismantled a rigid administrative stance, offering a fresh lifeline to businesses penalized for belated filings.

The controversy originated when the revenue authorities initiated proceedings against the assessee for the financial period spanning April 2018 to March 2019. The department issued a Show Cause Notice on 25.12.2023, raising substantial tax demands.