2020 (6) TMI 480 - HC - GST

Vires of Rule 117(1A) of Central Goods and Service Tax Act, 2017 - time limitation - permission to petitioner to electronically upload form TRAN-I or avail input tax credit in monthly return GSTR-3B - HELD THAT - The Petitioner has challenged vires of Rule 117 (1A) of Rules, however we do not think it appropriate to declare it invalid as we are of the considered opinion that Petitioner is entitled to carry forward VAT Credit/ITC accrued under Punjab Value Added Tax Act, 2005. The Respondents have repeatedly extended date to file TRAN-I where there was technical glitch as per their understanding. Repeated extensions of last date to file TRAN-I in case of technical glitches as understood by Respondent vindicate claim of the Petitioner that denial of unutilized credit to those dealers who are unable to furnish evidence of attempt to upload TRAN-I would amount to violation of Article 14 as well Article 300A of the Constitution of India. Reliance can be placed in the case of ADFERT TECHNOLOGIES PVT. LTD. VERSUS UNION OF INDIA AND ORS. 2019 (11) TMI 282 - PUNJAB AND HARYANA HIGH COURT where it was held that Respondents are directed to permit the Petitioners to file or revise where already filed incorrect TRAN-1 either electronically or manually statutory Form(s) TRAN-1 on or before 30th November 2019. The Respondents are directed to permit Petitioner to upload TRAN-I on or before 30.06.2020 and in case Respondent fails to do so, the Petitioner would be at liberty to avail ITC in question in GSTR-3B of July 2020 - petition allowed.

Summary

Issues:
Challenging vires of Rule 117(1A) of Central Goods and Service Tax Act, 2017 and seeking direction to permit electronic upload of form TRAN-I or avail input tax credit (ITC) in monthly return GSTR-3B.

Analysis:

Issue 1: Challenging vires of Rule 117(1A) of CGST Act, 2017
The petitioner, a partnership firm, contested the validity of Rule 117(1A) of the Central Goods and Service Tax Act, 2017. The petitioner sought permission to electronically upload form TRAN-I or avail input tax credit (ITC) in the monthly return GSTR-3B. The respondent had extended the date for filing TRAN-I till 31.03.2020 due to technical difficulties. The court noted that the issue was covered by previous judgments of the High Court and Delhi High Court, allowing similar petitions to file TRAN-I by a specified date. The court emphasized that denying unutilized credit to dealers unable to provide evidence of attempting to upload TRAN-I would violate Article 14 and Article 300A of the Constitution of India.

Issue 2: Direction to permit Petitioner to upload TRAN-I
The court, after considering the judgments of the High Court and Delhi High Court, allowed the present petition. The respondents were directed to permit the petitioner to upload TRAN-I on or before 30.06.2020. In case the respondent failed to comply, the petitioner was granted liberty to avail ITC in the GSTR-3B of July 2020. The court also highlighted that the respondents could verify the genuineness of the claims made by the petitioner.

This detailed analysis of the judgment showcases the court's interpretation of the legal provisions, previous judgments, and the rights of the petitioner in challenging the rule and seeking relief for carrying forward CENVAT credit.