M/S. Mahavir Auto Diagnostics PVT. LTD. vs. Union Of INDIA And 3N Others

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WP/18233/2019HC TelanganaGSTCNR HBHC01034207201901 November 2022Bench: C.V. BHASKAR REDDY,UJJAL BHUYAN8 pages

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Cause title — parties, addresses and appearances
HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) TUESDAY ,THE FIRST DAY OF NOVEIUBER TWO THOUSAND AND TWENTY TWO M/s. Mahavir Auto Diagnostics Pvt. Ltd., Represented by its Director Yashwanth Jhabak, Plot No.1098, Road No.36,Jubilee Hills, Hyderabad -500 033 ...PETITIONER AND 1. Union of lndia, Ministry of Finance, Department of Revenue, Represented by Secretary, North Block, New Delhi-1 10001 2. The Goods and Service Tax Network East Wing, 4th Floor World Mark-1 Aerocity New Delhi 1 10 037 3. Goods and Service Tax Council, Through its Secretary, 5th Floor, Tower ll, Jeevan Bharti Building, Janpath Road, Connaught Place, New Delhi-1 10 001 4. The Assistant Commissioner (CT) LTU, Abids Division, Hyderabad ...RESPONDENTS Petition under Article 226 of the Constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue an appropriate writ, order or direction more particularly one in the nature of a Writ of Mandamus (a) declaring that the time limit to file Form GST TRAN-3 specified in Clause 3 and Clause 4 of Notification issued by Ministry of Finance bearing Notification No.21 12A17 - Central Excise (N.T.) dated 30th June, 2017 (i) as being ultra vires Section 37 of the Central Excise Acl 1944, and Rule 15 of the Cenvat Credit Rules 2017 (ii) as also being arbitrary and unreasonable and violative of the provisions of Article 14, 1 I (1) (g), and 265 of the Constitution of lndia, (b) declaring the action of closing the facility to file Form GST TRAN 3 on the common portal of www.gst.gov.in as illegal (c) direct the Respondent No.2 and 4 to credit a sum of Rs.1 ,22,06,002/-. to the Electronic Credit Ledger of the Petitioner under GSTIN No. 36AABCM3690C1ZO maintained under the Central Goods and Service Tax Act, 2017, alternatively (d) to direct Respondent No.4 to refund accrued credit of Rs.1,22,06,002/-. in the pre-GST regime to the Peititioner and (e) or to allow the Petitioner to claim credit of Rs.1,22,06,002/- in Form GSTR-3B and pass such PRESENT THE HONOURABLE THE CHIEF JUSTICE UJJAL BHUYAN ANO THE HONOURABLE SRI JUSTICE C.V. BHASKAR REDDY WRIT PETITION NO: 18233 OF 2019 Between: further orders as r is Hon'ble circumstances of the ;ase. Court may deem fit :rd proper in the Petition under lection 151 CPC praying that in the c irc;urrstances stated in the affidavit filed ir sup,port of the petition, the High Court rnay be pleased to direct the respondenl ; to provisionally credit the sum of Rs 'l ,22,06,0021 to the Electronic Credit Ler ger of the Petitioner under GSTIN :6,r\AElCM369OC1ZO maintained on the cor tmo 1 portal Counsel for the Petiti rner: SRI. KARAN TALWAR Counsel for the Resp rndernt Nos. 1 & 3 : SRl. B. MUKHARJE E, Counsel for the Resp rndernt Nos 2 to 4 ; B. SAPNA REDDY. rep. SRI. B, NARASIMI-I\ SAITMA

The Court made the f, llovrring: ORDER lA NO: 1 OF 201!

THE HON'BLE THE CHIEF JUSTICE UJJAL BHTIYAN THE HON'BLE SRI JUSTICE C.V.BHASKAR REDDY Writ Petition No.18233 of 2OL9 ORDER: Per the Hotu'ble the Chief Justice Ujjat Btu)Aan) Heard Mr. Karaa Talwar, learned counsel for the petitioner; Mr. B. Mukharjee, learned counsel appearing for respondent Nos. 1 and 3; and Ms. Sapna Reddy, learned counsel representing Mr. B. Narasimha Sarma, learned counsel for respondent Nos.2 and 4. 2. By filing this petition under Article 226 of the Constitution of India, petitioner has prayed for the lollowing reliefs:- "It is therefore prayed that this Hon'ble Court may be pleased to issue an appropriate writ, order or direction more particularly one in the nature of a Writ of Mandamus (a) declaring that t^I.e time limit to f,le Form GST TRAN-3 specified in Clause 3 and Clause 4 of Notification issued by Ministry of Finance bearing Notification No.2l /2017 - Central Excise (N.T.) dated 30tr June, 2017 (i) as being ultra vires Section 37 of the Centra-l Excise Act 7944, and Rule 15 of the Cenvat Credit Rules 2OL7 (1ll as a.lso being arbitrary and unreasonable and violative of the provisions of Article 14, 19 (1) (g), and 265 of the Constitution of India; (b) declaring the action of closing the facility to ltle Form GST TRAN 3 on the common portal of www.gst.gov.in , t I I AND 2 as iuegal sum of R the Pet maintain 2017; alt accrued to the Pe credit of such fur and prop (c) clirect the Respondent No.2 and 4 t r r;rerlit a ;.1,22,06,OO2 /- to the Electronic Credit lx:dgr:r of ,iont:r under GSTIN No.36AAIICM3'.:9OC|ZO ,d under the Central Goods and Sen,icr T'ax Act, rrnatively (d) to direct Respondent No.,1 tc' refund rcdit of Rs.l,22,06,OO2/- in the pre-(ili'f re€tme itioner and (e) or to allow the Peti5one 1o cl:dm Rs. 1,22,O6,002/- in Form GSTR-3B rnd l)ass her orders as this Honble Court may cleenr fit 'r in the circumstances of the case."

3.

Howev :r in the hearing today, lear r<:d lor the petitioner sl bmits that he would confine to pr3.\'er tb) only. As extracte I above, prayer (b) relates to a<:tiorr of the respondents in ,:losing the facility in the comrr.r:)n t)ortal of www.gst.gor in to file Form GST TRAN 3. 4. It may be mentioned that Governmr:nt o'lndLa in the Ministry of rin:rnce (Department of Revenue had issued Notification No.2L /2017 Central Exr:ise lI'l.T dated 30.06.2017 n e:{ercise of the powers conferre( 1.ry f-:.ub-rule (2) of Rule 5 of the CENVAT Credit Rules, 2() t7. As per a-foresaid nc iification, a manufacturer who \.{'1.-c, rogistered 'under the C :ntral Excise Act, 7944 to evidenc: pavment of duty of exrise specified in the First Schcdule to thq erstwhile Cr ntrril Excise Tariff Act, 1985, p,rid ot-t goods\

J manufactured and cleared by him under the cover of an invoice before 01.07.2017 may issue a document called Credit Transfer Document to a person who was not registered under the Central Excise Act, 1944 but is Services Tax Act, 2Ol7 and is in possession of such manufactured goods held in stock on the date as specified in the aforesaid notification. As per Clause (3) of the aforesaid notification, the manufacturer issuing Credit Transfer Document has to submit the details thereof in table 1 of TRANS 3 on the common portal within 6O days of the appointed date. As per Clause (4) a dealer availing credit on Credit Transfer Document is required to submit details thereof in table 2 of TRAN 3 on the common portal

5.

Petitioner before us is the dealer availing credit on Credit Transfer Document. The appointed date is O1.O7.2O17. However, petitioner could not upload the details in Form GST TRAN 3 within the prescribed period because of technical glitches. It is in the above backdrop { t that the related writ petition has been filed. registered under the provisions of the Central Goods and within the 60 days of the appointed date.

,.t

6.

Respor der,t Nos.1 and 3 have filed a co u.r rLt.er affidavit opposing thr plea of the petitioner.

7.

It may not be necessary for us to delve rleep :.nto the rival conten krnr;, in as much as Supreme Cc.-.::t i-L Union Goods and Ser:vice Tax Network (GSTN) to o1:en the common pc :tal for filing concerned forms for availing transitionai crerlit through TRAN-I and TRl,.\l-2 for two months witl effect from O1.O9.2O22 to 31. t),.2C'.22 now extended to 10..[1.2022. Further, GSTN has lr,:en riirected to ensure fl at there a-re no technical glitche s during the extended pe 'iod. Concerned officials have b,:: n 11iven 90 days time the:reafter to verify the vera:ity of the claim/ trans. ,ional credit and to pass approl r r iatt: orders thereafter. Su preme Court has also direc' r:d tleat the allowed tra rsitional credit should be refle c:red in the ,electronic cr :dit ledger. B. Follow ng the above, we a-re also of the ', iev; that it would be i L the interest of justice if the p,:titioner 1S allowed to t rloerd table 2 of Form GST TRAN :l wil.hin the ( ( {

5 aforesaid period which wili however be subject to due verif,tcation of the respondents' Only after due veri{ication' the benefit of the above may be extended to the petitioner" g. Writ petition is accordingly disposed of' Miscellaneous applications pending, if any' shall stand closed. However, there shalt be no order as to costs' . M. MANJULA DEPUry REGISTRAR t1 , SECTION\SFFICER To, ,//

1.

The Secretary, Union of lndia, Ministry of Finance, Department of Revenue, North Block, New Delhi-110001

2.

The Goods and Service Tax Network East Wing, 4th Floor World Mark-1 Aerocity New Delhi 110 037

3.

Goods and Service Tax Council, Through its Secretary, 5th Floor, Tower ll, Jeevan Bharti Building, Janpath Road, Connaught Place, New Delhi-1 10 001

4.

The Assistant Commissioner (CT), LTU, Abids Division, Hyderabad

5.

One CC to SRl. KARAN TALWAR, Advocate [OPUC]

6.

One CC to Sri B. MUKHARJEE. [OPUC]

7.

Two CD Copies B. One Spare Copy. PSR GJP 9,

HIGH COURT DATED:01 111t20',22 a f srAl e- o .t : I ..,/ f t\ $Et Nlt I I ln irlr t' ORDER WP.No.18233 >t:1019 DISPOSING OI' TITIE WRIT PETITION WITHOUT COS TS. (0 .-r^/

Reproduced from the public record of the Telangana High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.