2020 (6) TMI 657 - 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 - List on 16th September, 2020.

Summary

Issues:
Petition seeking direction to allow carrying forward of credit of eligible dues in electronic credit ledger, declaration of Rules 117 and 120A as ultra vires, and challenging retrospective amendment in Section 140(1) of CGST Act.

Analysis:

The High Court of Delhi, comprising Hon'ble Mr. Justice Manmohan and Hon'ble Mr. Justice Sanjeev Narula, heard a petition filed seeking various reliefs related to the Central Goods and Services Tax Act, 2017. The petitioner sought a direction to allow carrying forward of credit of eligible dues in its electronic credit ledger concerning stock available as of 30th June 2017. Additionally, the petitioner requested a declaration of Rules 117 and 120A of the CGST Rules as ultra vires Sections 140 and 174 of the CGST Act. The petitioner also challenged the retrospective amendment made in Section 140(1) with effect from 1st July 2017, alleging it to be illegal and arbitrary. The Court noted the urgency expressed in listing the petition and conducted the hearing via video conferencing.

During the proceedings, Mr. Anil Soni, learned standing counsel, accepted notice on behalf of respondent no. 1, while Mr. Anuj Aggarwal, learned counsel, accepted notice on behalf of respondent no. 2. The Court directed the issuance of notice to the unserved respondent and ordered the filing of counter-affidavits within four weeks. Any rejoinder-affidavit was to be filed within four weeks thereafter. The matter was listed for further hearing on 16th September 2020. The Court instructed the immediate uploading of the order on the website and the forwarding of a copy to the learned counsel through email.

In conclusion, the judgment highlighted the key issues raised in the petition, including the request for carrying forward of credit, the challenge to specific rules, and the objection to the retrospective amendment in the CGST Act. The Court's directives regarding notice, filing of affidavits, and scheduling of further proceedings demonstrated a systematic approach to addressing the complex legal issues presented in the case.