Siemens India Ltd. Vs Union of India (Bombay High Court)
The Hon’ble Bombay High Court in the case of Siemens India Ltd. v. Union of India [Writ Petition No. 986 of 2019 dated February 09, 2024], relying upon sub-section (7) of Section 140 of the Central Goods and Services Tax Act, 2017 (“the CGST Act”) adjourned the matter for further hearing and continued the interim stay granted in favour of Assessee being Input Service Distributor (“ISD”) on the ground that, ITC which is legitimately available with the Assessee before the Appointed day, cannot be lost or lapsed, merely because of lack of effective procedural mechanism for ITC to be transferred to the Electronic Credit Ledger for utilization, thereby creating a situation of such ITC being permanently lost.
Facts:
Siemens India Ltd. (“the Petitioner”), registered as ISD has filed a writ petition regarding allowance of transition of Input Tax Credit (“ITC”) available with them on July 1, 2017 (“the Appointed Day”), contending that, ITC was not permitted to be transitioned/and or taken in the Electronic Credit Ledger, by the Revenue Department (“the Respondent”), even when the Petitioner was entitled to it, merely on the ground that there is a defective electronic mechanism to give effect to such ITC.
The present proceedings were commenced by the Hon’ble High Court in compliance with the order dated March 24, 2023, passed by the Hon’ble Supreme Court in the case of Union of India and Ors. v. Siemens Ltd. and Ors [SLP (Civil) Diary No. 7213 of 2023] wherein the proceedings were remanded for fresh consideration and judgement to be delivered on merits, taking into consideration the contention made and relevant provisions of law.
Issue:
Whether ISD is eligible to transition ITC available with them on Appointed Day?
Held:
The Hon’ble Bombay High Court in the case of Writ Petition 986 of 2019 held as under:
