Case Law Details
Jay Chemical Industries Limited Vs Union Of India (Gujarat High Court)
While the entire tax structure within the country was thus being replaced by a new framework, it was necessary for the legislature to make transitional provisions. Section 140 of the CGST Act, which is a transitional provision, essentially preserves all taxes paid or suffered by a dealer. Credit thereof is to be given in electronic credit register under the new statute, only subject to making necessary declarations in prescribed format within the prescribed time. As noted, subsection [1] of Section 164 of the CGST Act authorizes the Government to make rules for carrying out the provisions of the Act on recommendations of the Council. Subsection [2] of Section 164 further provides that without prejudice to the generality of the provisions of subsection [1], the Government could also make rules for all, or any of the matters, which by this Act are required to be or may be prescribed or in respect of which, provisions are to be or may be made by the rules. Combined effect of the powers conferred to subordinate legislature under subsections [1] and [2] of Section 164 of the CGST Act would convince us that the prescription of time limit under subrule [1] of Rule 117 of the CGST Rules is not ultra vires the Act. Likewise, such prescription of time limit cannot be stated to be either unreasonable or arbitrary. When the entire tax structure of the country is being shifted from earlier framework to a new one, there has to be a degree of finality on claims, credits, transfers of such credits and all issues related thereto. The petitioners cannot argue that without any reference to the time limit, such credits should be allowed to be transferred during the process of migration. Any such view would hamper the effective implementation of the new tax structure and would also lead to endless disputes and litigations.
Under the circumstances, we do not see any scope for directing the respondents to allow the petitioner to correct the TRAN1 declaration already made. We may recall, such time limit initially provided in the rules was extended from time to time and lastly upto 27.12.2017. Further, limited extension has been granted to cover cases where genuine hardships were felt in uploading said declarations due to technical glitches.
The case of Bombay High Court in case of O/E/N India Ltd. & Anr. (supra) was very different. The petitioner had pointed out a typographical error in filling up figure of unused CENVAT credit available, the Court was of the opinion that said mere typographical error should not be the governing factor for deciding substantive rights. The Court prima-facie felt that section 172 of the Act which enables the Government to take necessary decision to avoid hardships could be utilized. The present situation is entirely different.
FULL TEXT OF THE HIGH COURT ORDER / JUDGMENT
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