2018 (9) TMI 1476 - HC - GST

Time limit for making necessary declaration to avail CENVAT Credit - migration to GST regime - vires of Rule 117 of the Central Goods and Service Tax Rules, 2017 - Held that - Sub-rule (1A) is inserted in Rule 117 of the CGST Rules which would enable the Commissioner to extend the time limit for making the declaration upto 31.03.2019 if a case of being prevented due to technical reasons is made out - It would be open for the petitioner therefore to seek such remedy before the appropriate Court - petition disposed off.

Summary

Issues: Difficulty in migrating credit from previous tax regime to GST regime, challenge to vires of Rule 117 of CGST Rules, technical glitches preventing uploading of declaration.

1. Difficulty in migrating credit from previous tax regime to GST regime:
The petitioner expressed difficulties in migrating the credit of a specific amount from the previous tax regime to the GST regime due to technical glitches on the official portal. The petitioner sought a direction to enable the availing of CENVAT credit in the electronic credit ledger as per Section 140 of the Central Goods and Service Tax Act, 2017. Additionally, the petitioner challenged the vires of Rule 117 of the Central Goods and Service Tax Rules, 2017, which specified the time limit for making the necessary declaration to avail such credit.

2. Challenge to vires of Rule 117 of CGST Rules:
In a separate judgment delivered in Special Civil Application No. 4252 of 2018, the court upheld the vires of the statutory provision under Rule 117 of the CGST Rules, thereby closing this particular challenge. The court noted that the Government of India had inserted sub-rule (1A) in Rule 117, allowing the Commissioner to extend the time limit for making the declaration up to 31.03.2019 in cases where technical glitches prevented uploading. The petitioner was advised to seek this remedy before the appropriate Court, thus resolving the challenge related to the vires of Rule 117.

3. Technical glitches preventing uploading of declaration:
Regarding the petitioner's grievance related to technical glitches hindering the uploading of the declaration, the court referred to the previous judgment where the Government of India's stance was recorded. The court highlighted that the insertion of sub-rule (1A) in Rule 117 of the CGST Rules provided a solution for cases where technical reasons prevented timely declaration. The petitioner was informed that they could pursue this remedy before the appropriate Court. Consequently, the petition was disposed of accordingly, addressing the issue of technical glitches preventing the uploading of the declaration.