Damco India Private Limited vs UOI & Ors
[TS-377-HC(BOM)-2024-GST]


1. Issue:

Whether Section 140(5) of the GST Act, 2017 prescribes a specific deadline for applying for an extension to record invoices in the books of account under transitional provisions.

2. Relevant Law:

Section 140(5) allows for a tax credit claim for goods or services received on or after the GST start date, provided the invoice is recorded within 30 days, extendable by another 30 days upon sufficient cause.

3. Facts:

▪️The assessee faced a cyberattack in June 2017, disrupting operations and delaying the recording of some invoices until August 28, 2017.

▪️The assessee applied for an extension to record the invoices on December 27, 2017, but the Revenue rejected the application, arguing it was too late.

▪️Consequently, the Revenue also rejected the Input Tax Credit (ITC) claimed by the assessee.

4. High Court Observations:

▪️The court clarified that Section 140(5) does not specify a deadline for filing an extension application.

▪️It only requires that the invoice be recorded within 30 days from July 1, 2017, extendable by another 30 days on sufficient cause.

▪️The rejection of the application solely on the basis of its filing date was deemed incorrect.

5. Decision:

▪️The court set aside the order rejecting the extension application and directed the Revenue to reassess the ITC claim as if the extension had been granted under Section 140(5).