Ms Paras Vinimay PVT LTD Through Its Authorized Signatory Shri Santosh Kumar Lal vs. The Goods And Services Tax Network Through Its Chairman

Facts

M/s Paras Vinimay Pvt. Ltd. (the petitioner) filed a writ petition before the Jharkhand High Court challenging 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. The petitioner argued that Section 140 of the Jharkhand Goods and Services Tax Act, 2017, does not authorize the rule-making authority to prescribe such a time limit. The petitioner also sought a declaration that the due date under Rule 117 is directory, not mandatory, and that their claim, filed manually on 12.06.2020, should be accepted and considered on merits. This manual filing followed earlier unsuccessful attempts to file the form online and a subsequent application to open the portal, which was not acted upon. The Deputy Commissioner of State Tax had rejected the manual application on 01.07.2020, citing the lack of online filing and no instruction to accept offline forms.

Held

The writ petition was disposed of as infructuous. The Court noted that the petitioner had already filed a revised TRAN-I during the window period granted by the Hon'ble Supreme Court in the case of Union of India and another versus Filco Trade Centre Pvt. Ltd. and another [2022 VIL 38 SC]. The respondents also submitted that the writ petition had become infructuous. Consequently, having regard to the fact that the grievance of the petitioner had been redressed in view of the judgment rendered by the Apex Court in the case of Filco Trade Centre Pvt. Ltd. and another, the writ petition was disposed of. No specific findings were given on the vires of Rule 117 or the interpretation of Section 140 and the Limitation Act, as the matter was rendered moot by subsequent events. The operative direction was to dispose of the writ petition.

Key Issues

1. Whether Rule 117 of the Jharkhand Goods and Services Tax Rules, 2017, to the extent it prescribes a period of limitation for claiming Input Tax Credit (ITC) in Form GST TRAN-1, is ultra vires to Section 140 of the Jharkhand Goods and Services Tax Act, 2017, as Section 140 does not authorize the rule-making authority to prescribe a time limit for filing Form GST TRAN-1 for claiming ITC? (Question of law) 2. Whether the due date contemplated under Rule 117 of the Jharkhand Goods and Services Tax Rules, 2017, for claiming transitional credit is procedural and therefore directory, not mandatory? (Question of law) 3. Whether, in the absence of any time limit provided in Section 140 of the JGST Act, 2017, for claiming Input Tax Credit (ITC), such claim in Form GST TRAN-1 can be filed within three years from the date of coming into force of the JGST Act, 2017, i.e., 30.06.2020, as per Article 137 of the Limitation Act, 1963? (Question of law) Petitioner's contentions: Rule 117 is ultra vires Section 140 as the latter does not permit time limits for TRAN-1 filing. The due date is directory. The claim should be allowed within the period prescribed by the Limitation Act, 1963. The manual filing should be accepted and considered on merits due to technical difficulties and inaction by authorities. Respondents' contentions: Not recorded in the judgment.