Ms Jai Jai Bajrangbali And Company Through Its Authorized Signatory Shri Rajnikant Sharma vs. The Goods And Services Tax Network Through Its Chairman

Facts

The petitioner, M/s Jai Jai Bajrangbali and Company, filed a writ petition 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 to quash an order dated June 12, 2020, passed by the Assistant Commissioner of State Tax, Dhanbad Circle, rejecting their manually filed Form GST TRAN-1 due to non-filing online and lack of information from the GST Council. The petitioner had previously applied for the portal to be opened for filing TRAN-1 due to technical difficulties, but no action was taken. The petition was mentioned for withdrawal.

Held

The Court noted that the writ petition had been placed for withdrawal at the request of the learned counsel for the petitioner. It was stated 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 learned counsel for the Respondent also submitted that the writ petition had become infructuous. Having regard to the fact that the grievance of the petitioner had already been redressed in view of the judgment rendered by the Apex Court in the case of Filco Trade Centre Pvt. Ltd. and another (supra), the writ petition was disposed of. The Court did not decide the issues raised on merits, as the matter was rendered infructuous by subsequent events and the petitioner's grievance being addressed by the Supreme Court's decision.

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, being procedural, is directory and not mandatory? (Question of law) 3. Whether, in the absence of any time limit in Section 140 of the JGST Act, 2017, for claiming 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., June 30, 2020, as per Article 137 of the Limitation Act, 1963? (Question of law) 4. Whether the order dated June 12, 2020, rejecting the petitioner's manually filed Form GST TRAN-1 is liable to be quashed? Petitioner's arguments: Rule 117 is ultra vires Section 140 as the latter does not permit time limits for TRAN-1. The time limit in Rule 117 is directory. In the absence of a statutory time limit, the Limitation Act, 1963, Article 137, applies, allowing a three-year period. The rejection order is arbitrary given prior attempts to file and technical difficulties. Revenue's arguments: Not recorded.