SGST High Court Cases

GST - Writ petitions seeking direction to respondent-authorities to allow the petitioners to submit/revise/re-revise electronically, the declarations in Form GST TRAN-1 and GST TRAN-2 - Petitioners relied on the provisions of Section 140 of the CGST Act to contend that a substantive right accrued or vested in their favour, to claim transition ITC under the GST regime could not be defeated by the procedural law framed and enforced by the delegate of the legislature - Whether the Input Tax Credit is a vested right under the GST regime – Correctness of view taken by Gujarat High Court in Siddharth Enterprises - Intent of Section 140 of the CGST Act - Constitutional validity of strict time prescription made under Section 140 of the CGST Act read with Rule 117 of the CGST Rules - burden on the “registered persons”/tax payers to lead evidence of difficulty faced in submitting/revising Form GST TRAN-1/TRAN-2 electronically - Section 140 of the CGST Act is a transition provision. It was incorporated to cater to the special circumstances arising upon replacement of the pre-existing plural indirect tax regime, by a singular indirect tax regime. Transactions had been performed under the pre-existing laws and tax paid thereon. Such transactions gave rise to CENVAT and ITC under the pre-existing laws. The legislature did not intend to nullify those credits earned under the pre-existing laws, rather, it intended to transition those credits to the GST regime. That appears to be the plain object and intent, of section 140 of the CGST - Though the consequence of non-submission of those Forms are apparent, yet no procedural law may be valid or held mandatory, if there exists physical impossibility or unreasonable difficulty/obstruction, to comply with the same. Once the CGST Act prescribed the manner and time to submit/revise only electronically through Form GST TRAN-1/ TRAN-2, the State was obligated to provide a robust and wholly reliable GST Portal to comply with that law. Failure or inability to provide that reliable online platform would render the strict time prescription made under Section 140 of the CGST Act read with Rule 117 of the CGST Rules, arbitrary and therefore violative of Article 14 of the Constitution of India – the writ petitions are allowed

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