Brand Equity Treaties Limited vs. The 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. The Court allowed the petitioners to file TRAN-1 within three years from the appointed date.
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. The respondents contended that the delay was not due to technical glitches but other issues at the assessees' end.
Key Issues
Whether Rule 117 of the CGST Rules, imposing a time limit for filing TRAN-1, is mandatory or directory, and if it can extinguish the substantive right to carry forward CENVAT credit.
Sections Cited
Section 140, Section 142, Rule 117
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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
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