Ms Hari Vishnu Enterprises Through Its Proprietor Shri Ramesh Chandra Sharma vs. The Goods And Service Tax Network Through Its Chairman

Facts

The petitioner, M/s Hari Vishnu Enterprises, sought a declaration that Rule 117 of the Jharkhand Goods and Services Tax Rules, 2017, prescribing a limitation period 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. They also sought to declare the due date for transitional credit as directory, not mandatory, and to allow filing of Form GST TRAN-1 within three years from the Act's commencement, citing Article 137 of the Limitation Act, 1963. The petitioner challenged an order dated 01.07.2020 by the Deputy Commissioner of State Tax, Katras Circle, rejecting their manually filed Form GST TRAN-1 due to non-filing online and lack of instructions to accept offline forms. The petitioner had previously applied for the portal to be opened due to technical difficulties but received no action.

Held

The Court noted that the petitioner had requested withdrawal of the writ petition. It was stated that the petitioner had already filed a revised TRAN-I during 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 [2022 VIL 38 SC]. The respondents 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 as infructuous. No specific finding was recorded on the legal issues raised by the petitioner, as the matter was settled by subsequent events and the Supreme Court's decision. 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, 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, Section 140 does not grant power to prescribe a time limit for TRAN-1 filing. Revenue's contention: Not recorded). 2. Whether the due date contemplated under Rule 117 for claiming transitional credit is merely directory and not mandatory, given the absence of a time limit in Section 140? (Petitioner's contention: Yes, it is procedural and directory. Revenue's contention: Not recorded). 3. Whether, in the absence of any time limit in Section 140 for claiming ITC, such a claim in Form GST TRAN-1 can be filed within three years from the date of the Act's commencement, as per Article 137 of the Limitation Act, 1963? (Petitioner's contention: Yes, citing Article 137. Revenue's contention: Not recorded). 4. Whether the order dated 01.07.2020, rejecting the petitioner's manually filed Form GST TRAN-1, is liable to be quashed, and whether the respondents should be directed to accept and decide the manually filed Form GST TRAN-1 on its merits? (Petitioner's contention: Yes, due to technical difficulties and prior applications. Revenue's contention: Not recorded).