Ms R K Enterprises Through Its Authorized Signatory Shri Rajnikant Sharma vs. The Goods And Services Tax Network Through Its Chairman

Facts

The petitioner, M/s R.K. Enterprises, 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 a declaration that the due date for claiming transitional credit was directory, not mandatory, and that the claim could be filed within three years from the Act's commencement under Article 137 of the Limitation Act, 1963. The petition further challenged an order dated June 12, 2020, by the Assistant Commissioner of State Tax, rejecting the petitioner's manually filed Form GST TRAN-1 due to non-filing online and lack of instructions to accept offline forms. The petitioner had previously requested the opening of the GST portal for filing TRAN-1 due to technical difficulties.

Held

The Court noted that the writ petition had become infructuous as 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. In light of the fact that the petitioner's grievance had already been redressed by the Apex Court's judgment in the Filco Trade Centre Pvt. Ltd. case, the writ petition was disposed of. No specific findings were made on the legal issues raised by the petitioner regarding the vires of Rule 117 or the applicability of the Limitation Act, as the matter was resolved on procedural grounds due to the subsequent Supreme Court ruling providing a remedy.

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? - Petitioner's contention: Section 140 of the JGST Act, 2017, does not empower the rule-making authority to prescribe a time limit for filing Form GST TRAN-1 for claiming ITC. 2. Whether the due date contemplated under Rule 117 of the Jharkhand Goods and Services Tax Rules, 2017, for claiming transitional credit is merely directory and not mandatory, in the absence of any time limit provided in Section 140 of the JGST Act, 2017? - Petitioner's contention: The due date is procedural and therefore directory, not mandatory. 3. Whether, in the absence of any time limit provided in Section 140 of the JGST Act, 2017, for claiming ITC, such claim in Form GST TRAN-1 can be filed by the registered dealer within three years from the date of coming into force of the JGST Act, 2017, as provided under Article 137 of the Limitation Act, 1963? - Petitioner's contention: The claim can be filed within three years from the Act's commencement under Article 137 of the Limitation Act, 1963. 4. Whether the order dated June 12, 2020, passed by the Assistant Commissioner of State Tax, 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 said form on its merits?