2022 (7) TMI 1315 - HC - GST

Constitutional Validity of Rule 117 of the Jharkhand Goods and Services Tax Rules, 2017 - period of limitation for claiming of Input Tax Credit (ITC) in Form GST TRAN-1 - ultra vires to Section 140 of the Jharkhand Goods and Services Tax Act, 2017 or not - due date to claim transitional credit - HELD THAT - As per order passed by the Apex Court in UNION OF INDIA ANR. VERSUS FILCO TRADE CENTRE PVT. LTD. ANR. 2022 (7) TMI 1232 - SC ORDER , any aggrieved registered assesse shall file relevant Form TRAN-1 and TRAN-2 or revise the already filed Form irrespective of whether the taxpayer has filed writ petition before the High Court or whether the case of the taxpayer has been decided by Information Technology Grievance Redressal Committee (ITGRC) within this window period of 01.09.2022 till 31.10.2022. As such, case of the petitioner would also abide by the said direction. Writ petition disposed off.

Summary

Issues:
1. Challenge to the validity of Rule 117 of Jharkhand Goods and Services Tax Rules, 2017.
2. Interpretation of time limit for claiming Input Tax Credit (ITC) under Section 140 of Jharkhand Goods and Services Tax Act, 2017.
3. Quashing of an order rejecting the petitioner's application for ITC claim.
4. Direction to accept and process the petitioner's ITC claim.
5. Impact of the Supreme Court judgment on transitional ITC claims.

Analysis:
1. The petitioner challenged the validity of Rule 117 of Jharkhand Goods and Services Tax Rules, 2017, arguing that it exceeded the authority granted under Section 140 of the Jharkhand Goods and Services Tax Act, 2017. The petitioner sought a declaration that the rule's time limit for claiming ITC in Form GST TRAN-1 was ultra vires and that the due date for transitional credit was procedural and not mandatory. The High Court allowed the deletion of this challenge as it was no longer necessary.

2. The petitioner also sought a declaration regarding the time limit for claiming ITC under Section 140 of the Jharkhand GST Act, 2017. They argued that the claim in Form GST TRAN-1 could be filed within three years from the date of the Act coming into force. The High Court considered the petitioner's arguments but ultimately disposed of the challenge based on subsequent developments and the Supreme Court's judgment allowing a window for filing transitional credit forms.

3. The petitioner requested the quashing of an order rejecting their application for ITC claim due to not filing Form GST TRAN-1 online. The High Court reviewed the circumstances leading to the rejection and the petitioner's efforts to file the form manually. The Court directed the concerned respondent to accept and process the manually filed form and decide on the ITC claim as per Section 140 of the Jharkhand GST Act, 2017.

4. In light of the Supreme Court's judgment providing a window for filing transitional credit forms, the High Court disposed of the petitioner's writ petition. The Court noted that the directions issued by the Supreme Court regarding filing and verification of transitional credit forms applied to the petitioner's case and similarly situated individuals. The petitioner was allowed to avail of the directive within the specified window period.

5. The impact of the Supreme Court judgment on transitional ITC claims was crucial in resolving the petitioner's case. The High Court acknowledged the directions given by the Supreme Court regarding the filing, revision, and verification of transitional credit forms, emphasizing the need for timely compliance and subsequent reflection of allowed transitional credit in the Electronic Credit Ledger. The High Court aligned the petitioner's case with the Supreme Court's directives for a consistent approach in addressing transitional credit issues.