Com. Cen. Goods & Services Tax, Kol. Com. vs. M/S. Paharpur Cooling Towers LTD. & Ors.
Original PDF →Facts
The appellant, Commissioner, Central Goods and Services Tax, Kolkata Commissionerate, filed an intra-Court appeal against an order dated December 5, 2019, passed in a writ petition. The original writ petition challenged a communication dated March 26, 2019, issued by the Additional Commissioner of State Tax, and also questioned the vires of Rule 117 of the Central Goods and Services Tax Rules, 2017, and Rule 117 of the West Bengal GST Rules, 2017. The appeal was filed with a delay of 55 days, for which an application to condone the delay was also filed. The respondent is M/s. Paharpur Cooling Towers Limited.
Held
The Court condoned the delay of 55 days in filing the appeal, finding the reasons assigned in the affidavit satisfactory. Regarding the substantive issues concerning the challenge to the communication and the vires of Rule 117 of the CGST and West Bengal GST Rules, 2017, the Court noted that an identical issue was dealt with in a previous case, Union of India Vs. Baljit Iron Private Limited & Ors. The Court referred to the Supreme Court's comprehensive directions in Union of India & Anr. – Vs. – FILCO Trade Centre Pvt. Ltd. & Anr. (dated July 22, 2022), which mandated GSTN to open a common portal for filing forms for availing transitional credit (TRAN-1 and TRAN-2) for two months. The Supreme Court's order directed aggrieved assessees to file or revise forms, and concerned officers to verify claims within 90 days thereafter. In light of these Supreme Court directions, the High Court held that no further orders were required in the present appeal, and it was disposed of in terms of the Supreme Court's order. The Court also noted a subsequent extension of time by the Supreme Court for opening the portal.
Key Issues
1. Whether the delay of 55 days in filing the intra-Court appeal should be condoned, considering the reasons provided by the appellant (Section 5 of the Limitation Act, 1963, implicitly relevant). 2. Whether the challenge to the communication dated March 26, 2019, and the vires of Rule 117 of the CGST Rules, 2017, and Rule 117 of the West Bengal GST Rules, 2017, requires further adjudication by this Court, in light of the Supreme Court's directions regarding transitional credit. Contentions: Petitioner (Appellant): Argued for condonation of delay, citing reasons in the affidavit. The appeal is directed against an order that dealt with the challenge to a communication and the vires of transitional credit rules. Revenue (State and Union of India): Appeared before the court. The judgment does not record specific arguments made by the revenue regarding the merits of the case, but they were represented.
Sections Cited
Rule 117
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
JUDGMENT (Judgment of the Court was delivered by T.S. SIVAGNANAM, J.)
Re: I.A. CAN 1 of 2020 (Old CAN 2392 of 2020) (not in file)
This application has been filed to condone the delay of 55 days in filing the instant appeal.
We have heard Mr. K. K. Maiti, learned counsel appearing for the appellant, Mr. Vipul Kundalia, learned counsel appearing for the Union of India, Mr. T. M. Siddique, learned Advocate for the State and Mr. Deepro Sen, learned Advocate for the first respondent.
We are satisfied with the reasons assigned in the affidavit filed in support of the application. Accordingly, the delay in filing the instant appeal is condoned.
The application being I.A. CAN 1 of 2020 (Old CAN 2392 of 2020) is allowed. Re: M.A.T. No.351 of 2020
This intra Court appeal is directed against the order dated 5th December, 2019 in W.P. No.7131(W) of 2019. In the said writ 2
petition, the appellant had challenged the communication dated 26th March, 2019 issued by the Additional Commissioner of State Tax and also the vires of Rule 117 of the Central Goods and Services Tax Rules, 2017 and Rule 117 of the West Bengal GST Rules, 2017. Identical issue was dealt with by this Court in the case of Union of India Vs. Baljit Iron Private Limited & Ors. in MAT 16 of 2022 by judgment and order dated 26th July, 2022. The appeal was disposed of. The operative portion of the said judgment and order reads as follows:-
“6. The Hon’ble Supreme Court in a recent decision in the case of Union of India & Anr. – Vs. – FILCO Trade Centre Pvt. Ltd. & Anr. in Special Leave Petition (C ) No(s).32709-32710/2018 dated 22nd July, 2022 has issued comprehensive direction with regard to availing of transitional credit through TRAN 1 and TRAN 2. The order passed by the Hon’ble Supreme Court is as follows:- “Having heard learned Additional Solicitor General, learned counsel appearing for different States and learned counsel appearing for different private parties 3
and having perused the record, we are of the view that it is just and proper to issue the following directions in these cases:
Goods and Service Tax Network (GSTN) is directed to open common portal for filing concerned forms for availing Transitional Credit through TRAN – 1 and TRAN – 2 for two months i.e. w.e.f. 01.09.2022 to 31.10.2022. 2. Considering the judgments of the High Courts on the then prevailing peculiar circumstances, any aggrieved registered assessee is directed to file the relevant from or revise the already filed form irrespective of whether the taxpayer has filed writ petition before the High Court or whether the case of the taxpayer has been decided by Information Technology Grievance Rederssal Committee (ITGRC).
GSTN has to ensure that there are no technical glitch during the said time.
The concerned officers are given 90 days thereafter to verify the veracity of the claim/transitional credit and pass appropriate orders thereon on 4
merits after granting appropriate reasonable opportunity to the parties concerned.
Thereafter, the allowed Transitional credit is to be reflected in the Electronic Credit Ledger.
If required GST Council may also issue appropriate guidelines to the field formations in scrutinizing the claims. The Special Leave Petitions are disposed of accordingly. Pending applications, if any, also stand disposed of. “
In the light of the above direction issued by the Hon’ble Supreme Court, no orders are required in this appeal. Accordingly, the appeal along with connected application (I.A. No.CAN 2 of 2022) stand disposed of in terms of the order passed by the Hon’ble Supreme Court.
Urgent photostat certified copy of this order, if applied for, be furnished to the parties expeditiously upon compliance of all legal formalities.” 5
In the light of the direction issued by the Hon’ble Supreme Court, no further orders are required to be passed in this appeal. Accordingly, the appeal and the connected application are disposed of in terms of the order passed by the Hon’ble Supreme Court.
Further, we note that the Hon’ble Supreme Court by an order dated 2nd September, 2022 as reported in 2022-VIL-63-SC (Union NAREN/PALLAB(AR.C) 6
Reproduced from the public record of the Calcutta High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.