M/S. Vemulapalli Brothers vs. Assistant Commissioner (Central Taxes)
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The petitioner, M/s. Vemulapalli Brothers, filed a writ petition challenging the legality and constitutionality of Rule 117(1) of the CGST Rules, 2017, and Telangana GST Rules, 2017, which prescribed a ninety-day time limit for filing Form GST TRAN-1. The petitioner also challenged various orders and the action of closing the facility to file Form GST TRAN-1 on the common portal. The petitioner sought directions to accept the form manually, set aside a penalty of Rs. 42,25,655/-, and credit this amount to their Electronic Credit Ledger. The petition was filed under Article 226 of the Constitution of India.
Held
The High Court held that the present writ petition is covered by a decision of the same Court dated 08.08.2022, passed in W.P.No.15082 of 2018 and batch. This decision, in turn, relied on the Supreme Court's order in Union of India v. Filco Trade Centre Pvt. Ltd. (2022 SCC Online SC 912). The Supreme Court had directed the Goods and Service Tax Network (GSTN) to open the common portal for filing concerned forms for availing Transitional Credit through TRAN-1 and TRAN-2 for two months, from 01.09.2022 to 31.10.2022. Aggrieved registered assessees were directed to file the relevant form or revise the already filed form. The concerned officers were given 90 days thereafter to verify the claims and pass appropriate orders. The ratio decidendi is that the Supreme Court's directions provide a mechanism to address the grievances related to the transitional credit filing, rendering further adjudication by the High Court unnecessary in such cases. Consequently, the writ petition was disposed of in light of the Supreme Court's directions.
Key Issues
1. Whether Rule 117(1) and its proviso of the CGST Rules, 2017, and Telangana GST Rules, 2017, prescribing a ninety-day time limit for filing Form GST TRAN-1, are illegal, ultra vires Sections 140, 164, and 174(2)(c) of the CGST Act, 2017, and Telangana GST Act, 2017, respectively, and are arbitrary, unreasonable, and violative of Articles 14, 19(1)(g), and 265 of the Constitution of India? 2. Whether Orders No. 3/2017-GST, 7/2017-GST, and 9/2017-GST issued by the 7th respondent are ultra vires Sections 140, 164, and 174(2)(c) of the Central Goods and Service Tax Act, 2017? 3. Whether the action of closing the facility to file Form GST TRAN-1 on the common portal from 28.12.2017 is illegal? Petitioner's arguments: The petitioner argued that the time limit prescribed for filing Form GST TRAN-1 was illegal, arbitrary, and unconstitutional. They also contended that the orders and the closure of the filing facility were ultra vires the relevant sections of the GST Acts and the Constitution. Revenue's arguments: The judgment does not record specific arguments from the revenue or state respondents. However, the court's decision was based on a Supreme Court judgment.
Sections Cited
Section 140, Section 164, Section 174(2)(c), Rule 117(1)
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
The Court made the bllowing: ORDER
THE HON'BLE THE CHIEF JUSTICE UJJAL BHUYAN AND THE HON'BLE SRI JUSTICE C.V.BHASKAR REDDY WRJT PETITION No.113O7 of 2O\9 ORDER: (Per tle Hon'bte ttle ChieI Justice Ujjal Bhuaan) Heard Mr. Shaik Jeelani Basha, learned counsel for the petitioner; Mr. Swaroop Oorilla, learned counsei for respondents No. I to 6 and 8; and Mr. B. Mukherjee, learned counsel for respondent No.7. 2. By liling this writ petition under Article 226 of the Constitution of India, petitioner has prayed for the following reliefs: "(a) declaring RuIe 117(1) and the proviso thereto of both the CGST Rules, 2Ol7 and Telangana GST Rules, 2017 to the extent they prescribe a time limit of ninety days for filing Form GST TRAN- I as illegal atd, ultra uires Section I4O, 164 & 17 aQl@l of the Centra-l Goods and Sen'ice Ta-r Act,2Ol7 and Section l4O, 164 and 174(2)(c) of the Telangana Goods altd Sen'icc Ta-t Act, 20 17. respectively and as also being a.rbitrary and unreasonable and violative of the provisions of Article 14, 19(1)(g) and 265 of thc Constitution of India; I
2 i i i I I 1 I I (b) (c) (dr (e) tfl (e) der laring Order No.3/2017-GST dated 21.9.:.',O17, Or ter No.7 f 20 l7-GST dated 28. 1O.2O 1'Z and Or ter No.9/2017-GST dated 15.11.2017 ir.sued by the 7th respondent as being ultro vires fk ction 14 ), 164 and 17 a(2llcl of the Central Gooi,,r zurd Se vice Tax Act,2017; de laring order of the 6th respondent vice OCT Re. in CCW/GST|74/2O15 dated 27.9.2).7 as ult'a uires Section 140, 164 & 17 4{21(c) r f the Te angana Goods arrd Service Tax Act 201.7; to declare the acLion of closing the facilitl ':o f-rle Fc 'm GST TRAN- 1 on the common pc,r .aJ o1' w'w gstgov.in from 28.12.2017 as illega!. to direct the respondent No.1 and 4 to actept tht, Fr rm GST TRAN- I manually and th : Hon'ble Court may be pleased to se t asidr: le y of penalty of Rs.42,25,655 /- as llegal, ar ritrary and in the facts and circumstances of th : case; tli ect the respondents to credit a :;r m of R .42.25,655/- to the Electronic Credit L,:rtger of tt:: petitioner under GSTIN No. 3, AABFV3565CIZB maintained under the ( entral G rrrrls and Service Tax Act, 2017 , an d th: T langarra Goods a:nd Service Tax Act, 2017, r( spectivelv and pass such other orders thlt this J Honble Court may deem fit in the interest of justice."
Learned counsel for the parties srs in agreement that the present writ petition is covered by a decision of this Court dated O8.O8.2O22 passed in W.P.No.15O82 of 20 18 and batch.
Order dated O8.O8.2O22 passed in W.P.No.l5O82 of 20 1B and batch reads as under:
"
This bunch of writ petitions have been hled before this Court seeking a direction to the r€spondents to grant further time to the petitioners to hle revised Form GST TRAN- 1 and TRAN-2 or to file fresh Form GST TRAN- f and TRAN-2 for various reasons as mentioned in the respective writ petitions.
The writ petitions were extensively heard on 2O.O7.2022 and was reserved for judgment. ln the meanwhile, we were informed that the issue raised in this bunch of writ petitions have been decided by the Supreme Court in Union of India v. Filco Trade Centre hrt. Ltd. (2022 SCC Online SC 9 l2).
Accordingly on mention being made, the bunch of ult petitions has again been listed today.
We have perused the order of the Supreme Court in Filco Trade Centre Pvt, Ltd. (supra). The order reads as under:
.1 2 "3 Having heard leamed Additional Solicitr,r G neral, learned counsel appearing for differert Sr rtes and learned counsel appearing for different pr varc parties and having perused the record, ue ar r o. the view that it is just and proper to issue tl e fc .orting directrons in lhese cases: Goods and Service Tax Network (GSTN) Ls directed to open common portal for filirrg concerrred forms for availing Transition 1l Crcdit rhrough TRAN I and TRAN-2 for t!'c months i.e. w.e.(. O1.O9.2022 to31.10.202:1. Considcring thc Judgments of the Hi1;h Courts on the then prevailing peculi rr circumstances, any aggrieved registercC assessee is directed to file the relevant forrr or revisc the already filed form irrespective o wheth( r thc taxpaver has liled writ petiti(,r bcforc the lligh Court or whether the case o thc taxpayer has been decided )) Information Technologr Grievance Redresra Commrttee (ITCRC). The concerncd ofllcers are given 9O dayr thcrealter to verify the veracity of t1( claim/transitional credit and pa sr appropriatc orders thereon on merits afre grantilrg appropriate reasonable opportunlt to the partles concerned. Therc.rfte.. the allowed Transitional creclit i, to be reflected rn the Electronic Creii . t-e d ger. 4 l I i i : If required CST Council may also appropriate !$idelines to thc formaLions in scruitinizing the claims.' rssu: fiol . \ 6. jearned counsel for the parties are in agr eement that t re above direction of the Supreme Cou rt sullicie ltly covcrs thc interest of the pefjtioners. No gricvan )e of the petitioners subsist thereafter. 7. r vieu, o[ abovc and in the light of the d,x ision of the Su rrcme Court in Filco Trade Centre I\.t, Ltd. GSTN has to ensure that there are r, tcchnical glitch during the said time.
5 I I (supra), this bunch of Writ Petitions are disposed of' However, there shall be no order as to costs." 5
Accordingly and in the tight of the above, the present writ petition is also disPosed of. Miscellaneous applications pending, if any, shall stand closed. However, there shall be no order as to costs' K. MAJI ASSISTANT RE TRAR /I// SECTION OFFICER The Assistant Commissioner (Central Taxes), Kukkatpally Division, Hyderabad The Superintendent of Central Tax, Fathenagar Range, Hyderabad. The Commissroner of Goods and Service Taxes, Ferozguda, Hyderabad The Chairman, Goods and Services Tax Network GSTN, East Wing, 4thFloor World Mark 1, Aerocity, New Delhi - 110037 The Secretary, Goods and Service Tax Council, 5thFloor Tower ll, Jeevan Bharti Building, Janpath Road Connaught Place, New Delhi-1 10 001. The Principal Secretary to Government, Revenue (SGST) Department, State of Telangana, Secretariat, Hyderabad The Secretary, Ministry of Finance Department of Revenue, Union of lndia, North Block, New Delhi-1 10001 . The Commissioner of Central Tax, State of Telangana, Hyderabad One CC to Sri Ravikiran Singh Advocate [OPUC] One CC to Sri Swaroop Oorilla(SR SC FOR CBIT AND CUSTOMS) Advocate loPUCl One CC to Sri B. Mukheriee, Advocate(OPUC) Two CD Copies One Spare Copy To, o o 10 11 12 '13 MBC SB 1. 2. 3
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HIGH COURT D. T'El): 1510912022 oY I 1- .71 ..r 1eLA,! .t t-t!' s 8: v 4I i il I E l { I 6 cq' \\ a -., ORDER WF,.11o.11307 of 2019 DISPOSING OF'fHl: WFIIT PETITION \n'1'l-t-toLtT cosTS Geis t,W-.' f*rnP
Reproduced from the public record of the Telangana High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.