2020 (6) TMI 654 - HC - GST

Carry forward of Transitional credit - credit of eligible dues in respect of stock available with the petitioner as on appointed day - vires of Rules l17 and 120A of the Central Goods and Services Tax Rules, 2017 as ultra vires Sections 140 and 174 of Central Goods and Services Tax Act, 2017 - HELD THAT - To await the judgment of the Supreme Court in UNION OF INDIA VERSUS BRAND EQUITY TREATIES LIMITED AND ORS. ETC. ETC. 2020 (6) TMI 517 - SC ORDER .

Summary

Issues involved:
1. Direction to allow petitioner to carry forward credit of eligible dues in electronic credit ledger.
2. Declaration of Rules 117 and 120A of CGST Rules, 2017 as ultra vires Sections 140 and 174 of CGST Act, 2017.
3. Declaration of retrospective amendment in Section 140(1) w.e.f. 01st July, 2017 as illegal and arbitrary.

Analysis:
1. The petitioner filed a writ petition seeking a direction to allow carrying forward of credit of eligible dues in its electronic credit ledger as of 30th June 2017. Additionally, the petitioner requested a declaration of Rules 117 and 120A of the Central Goods and Services Tax (CGST) Rules, 2017 as ultra vires Sections 140 and 174 of the CGST Act, 2017. The petitioner also challenged the retrospective amendment in Section 140(1) from 1st July 2017 as illegal and arbitrary. The court issued notice on the matter, and the respondents were directed to file counter-affidavits within four weeks. A rejoinder-affidavit, if any, was to be filed within four weeks thereafter.

2. The learned counsel representing respondent nos. 2 and 3 accepted the notice on their behalf. The court also ordered notice to unserved respondents. The case was adjourned to await the judgment of the Supreme Court in a related matter, specifically Union of India Vs. Brand Equity Treaties Limited & Ors. The next hearing was scheduled for 16th September 2020, as per the Supreme Court's order. The court directed the order to be uploaded on the website immediately and a copy to be forwarded to the respective counsel via email for reference and compliance.

This comprehensive analysis outlines the key issues raised in the legal judgment, the actions taken by the court, and the timeline for further proceedings, ensuring a detailed understanding of the case's progression and implications.