2019 (7) TMI 1070 - HC - GST

Transitional credit - Vires of Rules 117 and 120A of CGST Rules - Input Tax Credit - submission of declaration electronically in FORM GST TRAN-1 - HELD THAT - Learned counsel for the respondents pray for and are allowed one month's time to file a counter affidavit. In the meantime, we allow the petitioner 15 days' time to file the revised return manually. If the petitioner does so, his revised return may be considered in accordance with law - List this matter on 20.08.2019.

Summary

Issues: Challenge to vires of Rules 117 and 120A of CGST Rules

Analysis:

The petitioner challenged the validity of Rules 117 and 120A of the CGST Rules, which pertain to the submission and revision of declarations for input tax credit under Section 140. Rule 117 mandates the submission of a declaration in FORM GST TRAN-1 within ninety days of the appointed day, with a provision for extension by the Commissioner. Rule 120A allows for the revision of such declaration once within the specified time period. The petitioner argued that the rules, along with relevant orders, did not provide a clear period for revising the return, leading to arbitrariness.

The court considered the submissions and granted one month to the respondents to file a counter affidavit. Meanwhile, the petitioner was given 15 days to manually file the revised return. If the petitioner complies within the stipulated time, the revised return would be considered in accordance with the law. The matter was listed for further proceedings on 20.08.2019.

In conclusion, the judgment addressed the challenge to the vires of Rules 117 and 120A of the CGST Rules, providing an opportunity for both parties to present their arguments and allowing the petitioner a chance to file a revised return within a specified timeframe. The court's decision aimed to ensure compliance with the law while maintaining procedural fairness in the proceedings.