Kerala High Court Mandates Re-evaluation of March 2020 ITC Claim Citing Section 16(5) in Zach Rubber Case

The intersection of strict statutory deadlines and retrospective legislative relief often creates complex litigation in indirect taxation. A prominent example of this is the recent judicial intervention by the Kerala High Court in the case of Zach Rubber Private Limited Vs State Tax Officer. The dispute primarily revolved around the denial of Input Tax Credit (ITC) due to delayed return filing, invoking the restrictive time limits of Section 16(4) of the CGST Act. However, the introduction of Section 16(5) provided a crucial lifeline to the assessee, prompting the judiciary to quash the adverse assessment order and direct a fresh review.

Background of the Dispute

The assessee, a registered entity operating under the framework of the CGST/SGST Act, 2017, approached the Kerala High Court by filing a writ petition (WP(C) No. 20131 of 2026). The primary grievance was directed against an adjudication order passed by the tax authorities under Section 73 of the CGST/SGST Act, 2017.