Dishman Carbogen Amcis LTD vs. Union Of INDIA Through Secretary

Held

The Court held that the challenge to the vires of Rule 117 of the CGST Rules, 2017, was no longer open, as a separate judgment had been passed on the same day upholding its validity. Regarding the petitioner's grievance of technical glitches preventing them from uploading the declaration, the Court noted the Government's submission that sub-rule (1A) of Rule 117 had been inserted. This sub-rule empowers the Commissioner to extend the time limit for making the declaration up to March 31, 2019, if the petitioner demonstrates they were prevented from doing so due to technical reasons. Therefore, the petitioner was advised to seek this remedy before the appropriate authority. The Court did not decide on the merits of the petitioner's claim for credit but directed them to pursue the available statutory remedy.

Facts

The petitioner, Dishman Carbogen Amcis Ltd., sought a direction from the Gujarat High Court to enable them to migrate CENVAT credit of Rs. 45,36,017/- to the GST regime. They claimed that technical glitches on the official portal prevented them from making the necessary declaration within the permitted time. The petitioner also challenged the vires of Rule 117 of the Central Goods and Service Tax Rules, 2017, which prescribed the time limit for such declarations. The petition was filed before the High Court in its writ jurisdiction.

Key Issues

1. Whether Rule 117 of the Central Goods and Service Tax Rules, 2017, prescribing the time limit for availing CENVAT credit under the GST regime, is ultra vires the Central Goods and Service Tax Act, 2017? 2. Whether the petitioner should be permitted to avail the benefit of CENVAT credit in the electronic credit ledger, despite missing the prescribed deadline due to alleged technical glitches on the official portal? Petitioner's Arguments: The petitioner contended that Rule 117 was ultra vires and that technical issues prevented them from filing the declaration within the stipulated period, thus seeking a direction to allow them to avail the credit. Revenue's Arguments: The judgment notes that a separate judgment was passed today upholding the vires of Rule 117. It also records the stand of the Government of India that sub-rule (1A) was inserted into Rule 117, allowing the Commissioner to extend the time limit up to March 31, 2019, if a case of being prevented due to technical reasons is made out.