Reliance Elektrik Works vs. Union Of INDIA & Ors.
Held
The Court held that Rule 117, prescribing the time limit for filing TRAN-1, is directory and not mandatory. The substantive right to carry forward CENVAT credit under Section 140(1) cannot be defeated by a procedural rule.
Facts
The petitioners sought to avail input tax credit by filing Form TRAN-1 beyond the prescribed period. They argued that Rule 117 of the CGST Rules, imposing a time limit, was arbitrary and unconstitutional.
Key Issues
Whether the time limit prescribed under Rule 117 for filing TRAN-1 is mandatory or directory, and if it can defeat the substantive right to carry forward CENVAT credit.
Sections Cited
Section 140, Rule 117
AI-generated summary — verify with the full judgment below
Heard together (3 matters)
Read from the judgment's own cause title. This page is filed under one of them.
W.P.(C) 11040/2018& connected matters * IN THE HIGH COURT OF DELHI AT NEW DELHI
Reserved on: 02.03.2020 Pronounced on: 05.05.2020 + W.P.(C) 11040/2018 and C.M. No. 42982/2018
BRAND EQUITY TREATIES LIMITED
..... Petitioner
Through: Mr. Abhishek A. Rastogi, Advocate.
versus
THE UNION OF INDIA & ORS.
..... Respondents
Through: Ms. Shiva Lakshmi, CGSC for UOI. Mr. Amit Bansal, SSC with Mr.AmanRewaria and Ms. Vipasha Mishra, Advocates for respondent No. 3. + W.P.(C) 196/2019& CM APPL. 965/2019
MICROMAX INFORMATICS LTD.
..... Petitioner
Through: Mr. Alok Yadav, Advocate.
versus
UNION OF INDIA & ANR.
..... Respondents
Through:
Mr. Amit Bansal, SSC with Mr.AmanRewaria and Ms. Vipasha Mishra, Advocates for respondent No. 2. + W.P.(C) 8496/2019
DEVELOPER GROUP INDIA PRIVATE LIMITED..... Petitioner Through: Ms. Kavita Jha, Mr. Shammi Kapoor, Ms. Kritika Kapoor and Ms. Swati Agarwal, Advocates.
W.P.(C) 11040/2018& connected matt
The judgment continues below.
Read the full judgment
A free account opens 10 full GST judgments a month (one account works on both bharattax.net and this site). Re-reading one you have already opened does not count again.
The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.
Reproduced from the public record of the Delhi High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.