Ms Monnet Daniels Coal Washeries Limited Through Sisir Kumar Goswami vs. Union Of INDIA Through The Principal Commissioner Central Goods And Service Tax

Facts

The petitioner, M/s Monnet Daniels Coal Washeries Limited, filed a writ petition before the Jharkhand High Court challenging Rule 117 of the Jharkhand Goods and Services Tax Rules, 2017. The petitioner sought a declaration that the rule, to the extent it prescribed a period of limitation for claiming Input Tax Credit (ITC) in Form GST TRAN-1, was ultra vires Section 140 of the Jharkhand Goods and Services Tax Act, 2017. Alternatively, the petitioner prayed for a direction to open the GST portal to allow them to claim transitional credit or to process their manually filed Form GST TRAN-1 dated March 29, 2019. However, during the proceedings, it was stated that the petitioner had already filed a revised TRAN-I within a window period granted by the Supreme Court in the case of Union of India and another versus Filco Trade Centre Pvt. Ltd. and another.

Held

The High Court noted that the petitioner's grievance had been redressed. The petitioner had already filed a revised TRAN-I within the window period granted by the Supreme Court in the case of Union of India and another versus Filco Trade Centre Pvt. Ltd. and another. Consequently, the writ petition was disposed of as having become infructuous. The court did not delve into the merits of the ultra vires challenge to Rule 117 or the arguments regarding the procedural nature of the due date, as the substantive relief sought by the petitioner had already been achieved through the Supreme Court's intervention and the subsequent filing of the revised form. No specific issue was expressly left undecided, but the court's decision was based on the subsequent events rather than a determination of the legal questions raised.

Key Issues

1. Whether Rule 117 of the Jharkhand Goods and Services Tax Rules, 2017, which prescribes a period of limitation for claiming Input Tax Credit (ITC) in Form GST TRAN-1, is ultra vires Section 140 of the Jharkhand Goods and Services Tax Act, 2017, as Section 140 does not authorize the rule-making authority to prescribe such a time limit. (Petitioner's contention: Yes, the rule is ultra vires as the Act does not grant power to impose a time limit for claiming transitional credit). 2. Whether the due date contemplated under Rule 117 for claiming transitional credit is merely directory and not mandatory, given its procedural nature. (Petitioner's contention: Yes, being procedural, the due date is directory and not mandatory). 3. Whether the concerned respondents should be directed to allow the petitioner to claim excess ITC under Rule 117 by opening the GST portal for filing Form GST TRAN-1, or to process the manually filed Form GST TRAN-1. (Petitioner's contention: Yes, such a direction is necessary to carry forward the transitional credit as per Section 140). The respondents did not record any specific arguments but acknowledged the petition had become infructuous.