In a recent case, Rajasthan High Court rejected the petition filed by Shree Motors, as well as the court also denied transitional credit due to non-attempt to file GST Tran-1. In this case, the petition was filed by Shree Motors and the petitioners had purchased goods before the appointed date, 01.07.2017. The goods were held in stock on the appointed date. The Central GST ActGet the brief introduction of SGST, IGST and CGST. We have mentioned their full forms, meanings and adjustments of input tax credit under GST in India. Read more includes transitional provision for the transition of credit for a person who is registered to receive credit for applicable duties in respect of input held in stock on the appointed day.
Rule 117 of the CGST Rules, 2017 was constructed for allowing carry forward of the eligible duties available with the goods or assessee on the day immediately preceding 01.07.2017, which imposed a time limit of 90 days to receive credits of applicable duties in electronic credit ledger.
In the case, It was claimed that the etitioners have failed to file GST Tran-1 at the online portal within the due time under Rule 117 of the CGST Rules. As per the petitioners, the reason for failed attempts was various technical glitches/system error on the portal. They also attempted help at the GST network portalRead out the complete guide of official GST return filing portal i.e. GSTN for Indian taxpayers. We explain all the important part with the brief introduction. Read more, and then the petitioners approached the authorities and department for manually accepting the concerned form Form GST Tran-1. They made several attempts in this regard but they failed to obtain a response.
However, the learned counsel for the respondent stated that’ after going through the log, there was no evidence of any glitch or error or submission or filing of Form GST Tran-1 by the petitioners. Thus, the petitioners on account of alleged vested rights are not eligible to seek any relaxation in the limitation and reopening of the portal for the purpose.
All the allegations made about the technical glitches and errors and that the assessees were generally denied the credit on account of such technical glitches are baseless because there were a huge number of Form GST Tran-1 that was filed successfully in between the same time frame and transitional credit was also given. After not finding any evidence of error or submission/ filing of Form GST Tran-1Get the easy guide for online filing GST TRAN 1 form in a step by step process. We have also break down the each part of form for easy understanding. Read more by the petitioners, the Rajasthan High court ruled that they were not eligible for any relief.
Justice Arun Bhansali (Rajasthan High Court) commented that “The theory of vested rights and the implication of limitation on the said aspect of the vested right has been considered by Hon’ble Supreme Court in the case of Osram Surya (P) Ltd., wherein, while considering the proviso II to Rule 57G of the Act of 1944 it was laid down that by providing limitation the statute has not taken away any of the vested rights, which accrue to the manufacturers and what is restricted is the time, within which, the manufacturer has to enforce that right and, therefore, once the provisions of Rule 117 of the CGST Rules, which prescribe limitation has been upheld, the plea raised pertaining to the denial of vested right on account of petitioners failing to submit/file Form GST Tran-1 in time cannot be countenanced”.