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2020 (3) TMI 1037 - HC - GSTReopening of portal for Carry forward in-transit credit - Section 140(3) of the Central Goods and Services Tax Act, 2017 read with Rule 117 of CGST Rules, 2017 - HELD THAT - Pursuant to the decision of this Court rendered in the case of FILCO TRADE CENTRE PVT. LTD. VERSUS UNION OF INDIA 2018 (9) TMI 885 - GUJARAT HIGH COURT , the writ applicant was entitled to the credit pertaining to the stock held beyond 12 months from the effective date of 01.07.2017. The respondents are hereby directed to consider the representation of the writ applicants at the earliest keeping in mind the ratio laid down by this Court in the case of Filco Trade Center Pvt. Ltd. - Such exercise shall be completed within a period of four weeks from the date of the receipt of the writ of this order. Application disposed off.
Issues Involved:
Claim for transitional credit under GST regulations. Analysis: The writ application under Article 226 of the Constitution of India sought relief to amend or re-open GST Form-Tran 1 filed by the petitioner and to carry forward in-transit credit beyond 12 months from the effective date of 1.07.2017 in electronic credit ledger. The petitioner, a Private Limited Company engaged in trading, claimed transitional credit under Section 140(3) of the Central Goods and Services Tax Act, 2017. The petitioner computed transitional credit without claiming Input Tax Credit for stock held prior to 01.07.2016. Following a court decision allowing credit for stock held beyond 12 months from 01.07.2017, the petitioner requested authorities to enable claiming such credit. Despite multiple representations, authorities did not respond. The court referred to a previous judgment where it held that the provision restricting credit for goods purchased prior to one year from the appointed day was unconstitutional. In light of this, the court directed the respondents to consider the petitioner's representation to claim in put tax credit for stock held prior to 12 months from the appointed date. The respondents were instructed to complete this exercise within four weeks from the date of receiving the court's order. The court disposed of the writ application, permitting direct service. In conclusion, the judgment addressed the issue of transitional credit under GST regulations and the entitlement of businesses to claim credit for stock held beyond 12 months from the appointed date. The court emphasized the importance of following its previous ruling and directed the respondents to consider the petitioner's claim promptly.
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