The Madras High Court has held that the timelines for uploading GST TRAN 1 for seeking credit as well as revision of the credit must not be identical.
The petitioner, M/s.Interplex Electronics India Pvt. Ltd has sought a direction to the respondents to credit the amount relating to the input tax credit (ITC) of Rs. 16,21,227 and Rs. 4,24,136 to the electronic credit ledger of the petitioner.
The petitioner was entitled to a transition of various components of the ITC in terms of Section 140 of the CGST Act and claimed entitlement to the amounts of Rs. 16,21,227 and Rs. 4,24,136 as per the proviso to Section 140(1).
As per Rule 117 of the CGST Rules, every GST registrant who claims transition of credit in terms of Section 140 is to file a declaration on Form GSTR TRAN-1 in the common GST Portal within 90 days. The time limit was extended on several occasions to provide for the technical glitches plaguing the systems and to accommodate the difficulty faced by taxpayers as well as the officials of the Department in adapting to the new procedure.
It was observed that Rule 120A did not specify a time limit for revision, but the limits could be deduced from the timelines outlined in Rule 117. Further viewed that the timelines under Rule 120A must be of a period over and above the timelines stipulated in Rule 117.
The Bench observed that mere transition does not create any vested right upon the assessee as the eligibility to credit was an entirely different matter that would be tested by the Assessing Authority in their respective assessments.
The single bench of Justice Anitha Sumanth allowed the writ petition with the direction to complete within a period of eight weeks from the date of uploading of this order on the official website of the Court.
Advocate G.Natarajan appeared for the petitioner and Richardson Wilson appeared for the respondent.
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