Allow Cookies!
By using our website, you agree to the use of cookies
In the case of a writ petition filed by Nelco Limited, the Division bench of the High Court of Bombay comprising of Justice Nitin Jamdar and Justice MS Karnik dismissed the writ petition moved by the Petitioner after concluding that input tax credit is a form of concession, not a right.
The facts of the case are as follows:
(i) The Goods and Services Tax Act of 2017 replaced and subsumed various indirect taxes in India.
(ii) For the transition between the old and new regimes, the Act provides for utilization of Input Tax Credit accumulated under the earlier tax laws upon certain conditions.
(iii) The Goods and Services Tax Rules framed under the Act provide for filing of a form known as GST TRAN-1 for availing of such input tax credit. The Rules provide for a time limit within which the TRAN-1 Form has to be filed.
(iv) According to the petitioner company, they had accumulated CENVAT Credit during its activities and payment of taxes. However, when it attempted to file a TRAN-1 Form on 27th December, 2017. The same could not be filed, as there were problems on the Goods and Services Tax Network.
(v) Then an email was sent to the official complaint portal of respondents but no response was received.
(vi) When the petitioner tried to file TRAN-1 Form again, the portal did not permit an option for filing of the said form.
(vii) After several extensions, the deadline for filing TRAN-1 Form was extended till 31st January 2019 for persons facing technical difficulties. This deadline has now been extended to 31st March for the persons specified in Rule 117(1A).
The Bench referred to the case of JCB India Ltd. vs Union of India and Willowood Chemicals Ltd. v/s. Union of India. They observed the following:
"Those registered persons who could not submit the declaration by the due date because of technical difficulties on the common portal as can be evidenced from the system logs are given an extension on the recommendation of the Council. Where no such evidence is forthcoming, no recommendation is made. In the Petitioner's case, no such proof emerges and, therefore, no direction as sought for can be issued."
In conclusion, the Bombay High Court held that the time limit prescribed under Rule 117 of the Goods and Services Rules for filing TRAN-1 form in order to claim input tax credit from the previous regime is not ultra vires to the Central Goods and Services Tax Act.
86540
103860
630
114
59824