The Calcutta High Court has held that the six-month time limit prescribed by the executive circular/notification (dated 08.04.2024 read with 15.10.2024) for filing a rectification application to avail ITC under Section 16(5) of the CGST Act is directory and not mandatory, as Section 16(5) — the substantive statutory provision — does not prescribe any time limit for filing such an application. The ruling by Justice Aniruddha Roy in WPA No. 1360 of 2026 (Umen Chandra Roy, decided 17.08.2026) holds that notifications issued in exercise of executive power cannot prevail upon or override a substantive statutory right, and that the court may extend the time depending upon the facts of each case, unless there is exceptional delay.
The petitioner's rectification application was rejected by the Revenue on the ground that it was filed beyond the six-month window prescribed by the notification/circular. The court observed that Section 16(5) gives a substantive right to the assessee to avail ITC for the financial years 2017-18 to 2020-21 where returns were filed before 30.11.2021, but does not specify any time within which a rectification application must be filed. While the Department, through administrative circulars, had limited the period to six months from the date of the circular, the court held that such administrative prescriptions are guidelines that are directory in nature and cannot override the substantive provision. The rejection order was set aside and the jurisdictional authority was directed to revisit the rectification application on merits within eight weeks.
- 2026-juristway.com-2471-HC(Calcutta)-GST | High Court of Calcutta | WPA No. 1360 of 2026 | 17.08.2026