M/S.Sri Siddeshwara Oil Mill vs. Assistant Commissioner (State Tax)
Held
The Court disposed of the Writ Petition by granting the petitioner liberty to approach the concerned authorities and submit FORM GST TRAN-1 and FORM GST TRAN-2 in compliance with the notification dated 10.09.2018. The petitioner was also granted liberty to question the vires of the aforesaid provisions at a later stage, if the need arose. The Court did not delve into the merits of the petitioner's challenge to the vires of Rule 117(1) as the petitioner sought to proceed under the amended provisions. The operative direction was to permit the petitioner to file the forms as per the notification, effectively providing a procedural remedy without deciding the substantive legal challenge.
Facts
The petitioner challenged the vires of Rule 117(1) of the CGST Rules, 2017, and its proviso, which prescribed a time limit of ninety days for filing the GST TRAN-1 form. The petitioner argued that this time limit was illegal and ultra vires Sections 140, 164, and 174(2)(c) of the Telangana Goods and Service Tax Act, 2017. The revenue, through the learned Special Standing Counsel, informed the Court that the Government of India had inserted sub-rule (1A) to Rule 117(1) of the CGST Rules, 2017, via notification dated 10.09.2018. This notification provided a proviso to Rule 117(1)(4)(b)(iii), allowing registered persons filing TRAN-1 in accordance with sub-rule (1A) to submit FORM GST TRAN-2 by 30.04.2019. The petitioner then sought permission to submit the forms as per the new notification and requested liberty to question the vires of the provisions later if necessary.
Key Issues
1. Whether Rule 117(1) of the CGST Rules, 2017, and its proviso, prescribing a ninety-day time limit for filing GST TRAN-1, are illegal and ultra vires Sections 140, 164, and 174(2)(c) of the Telangana Goods and Service Tax Act, 2017? Petitioner's Contention: The petitioner argued that the prescribed time limit for filing GST TRAN-1 was illegal and ultra vires the relevant sections of the Act. Revenue's Contention: The revenue brought to the Court's notice the insertion of sub-rule (1A) to Rule 117(1) of the CGST Rules, 2017, by notification dated 10.09.2018, which provided an extended timeline for filing TRAN-1 and TRAN-2 forms. The revenue did not explicitly argue on the vires of the original rule but presented the subsequent amendment.
Sections Cited
Rule 117(1), Rule 117(1A), Rule 117(1)(4)(b)(iii), Section 140, Section 164, Section 174(2)(c)
AI-generated summary — verify with the full judgment below
THE HON’BLE SRI JUSTICE RAMESH RANGANATHAN AND THE HON’BLE SMT JUSTICE KONGARA VIJAYA LAKSHMI WRIT PETITION NO.33158 OF 2018 ORDER: {Per the Hon’ble Sri Justice Ramesh Ranganathan} Heard Sri S.Krishna Murthy, learned counsel for the petitioner and Sri J.Anil Kumar, learned Special Standing Counsel for Commercial Taxes and, with their consent, the Writ Petition is disposed of at the stage of admission.
While the vires of Rule 117(1) of the CGST Rules, 2017 and its proviso, to the extent time limit of ninety (90) days is prescribed for filing Four GST TRAN-1 forms, is questioned in this Writ Petition as illegal and ultra vires Sections 140, 164 and 174(2)(c) of the Telangana Goods and Service Tax Act, 2017, it is brought to our notice by Sri J.Anil Kumar, learned Special Standing Counsel for Commercial Taxes, that the Government of India had inserted sub- rule (1A) to Rule 117(1) of the CGST Rules, 2017 vide notification No.48/2018 dated 10.09.2018; and had inserted a proviso to Rule 117(1) (4)(b)(iii) whereby registered persons, filing the declaration in FORM GST TRAN-1 in accordance with sub-rule (1A), may submit the statement in FORM GST TRAN-2 by 30.04.2019. S
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