Case Law Details
Subhas & Company Vs Commissioner of CGST (Calcutta High Court)
The issue under consideration is whether the petitioner is entitled to get an opportunity to file the declaration in CGST TRAN –2 in order to be allowed to take transitional Credit on account of inputs held in stock as on the appointed date?
In present case, in order to comply with the GST regime the petitioner, duly filled up an SGST TRAN-I within time and mentioned all the details required to be filled up in said SGST. In order to claim the transitional credit in case of stock of goods as on the appointed date but while trying to file a GST TRAN-II the same could not be filed because the utility was not availed till 27 December 2017. The utility was made available only after the due date to file GST TRAN-I. Even after the due date technical issues while filing the transitional form in FORM GST TRAN-I and TRAN-II was there and hence could not file the same within the stipulated due date.
High Court states that the provisions of transitional credit being directory in nature, insofar as it prescribes the time-limit for transitioning of credit and therefore, the same would not result in the forfeiture of the rights, in case the credit is not availed within the period prescribed. This, however, does not mean that the availing of CENVAT credit can be in perpetuity. Transitory provisions, as the word indicates have to be given its due meaning. Transition from pre-GST Regime to GST Regime has not been smooth and therefore, what was reasonable in ideal circumstances is not in the current situation. In absence of any specific provisions under the Act, HC would have to hold that in terms of 0the residuary provisions of the Limitation Act, the period of three years should be the guiding principle and thus a period of three years from the appointed date would be the maximum period for availing of such credit. The petitioner has attempted to file TRAN within the time limit framed under the Rule. In the context of what has been stated discussed above, this court directs the respondent authorities to reopen the form TRAN II or accept manual filing of GST TRAN II to allow the petitioner to claim transitional credit held in stock as on the appointed date after proper verification including the invoices submitted by the petitioner. It is made hereby clear that such exercise has to be completed within 30.06.2020 so as to enable the petitioner to submit his GST TRAN II.
FULL TEXT OF THE HIGH COURT ORDER /JUDGEMENT
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