Ms Lingraj Consultants Private Limited Through Its Authorized Signatory Shri Santosh Kumar Lal vs. The Goods And Services Tax Network Through Its Chairman

Facts

The petitioner, M/s Lingraj Consultants Private Limited, 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, by the Assistant Commissioner of State Tax, which rejected their manually filed TRAN-1 application due to non-filing online and lack of GST Council instructions. The petitioner had previously applied for the portal to be opened due to technical difficulties but received no action. The writ petition was filed seeking a declaration that the time limit was directory, not mandatory, and that the claim could be filed within three years from the Act's commencement.

Held

The Court noted that the petitioner's grievance had been redressed. The learned counsel for the petitioner submitted 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 learned counsel for the Respondent also concurred that the writ petition had become infructuous. Consequently, the Court disposed of the writ petition, acknowledging that the Apex Court's judgment in Filco Trade Centre Pvt. Ltd. and another had addressed the petitioner's concerns. No specific findings were made on the legal issues raised, as the matter was resolved by subsequent events.

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 ITC claims? The petitioner argued that Section 140 of the Act does not grant the power to prescribe a time limit, making the rule ultra vires. 2. Whether the due date contemplated under Rule 117 for claiming transitional credit is procedural and thus directory, not mandatory? The petitioner contended that the due date was merely procedural and not mandatory. 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 the Act's commencement, i.e., June 30, 2020, as provided under Article 137 of the Limitation Act, 1963? The petitioner argued for a three-year limitation period under the Limitation Act. 4. Whether the order dated June 12, 2020, rejecting the petitioner's manually filed TRAN-1 application, is liable to be quashed, and if the manually filed TRAN-1 should be accepted and decided on merits? The petitioner sought the quashing of the rejection order and a direction to accept and decide their claim.