High Court allowed the petition of Amba Industrial Coportation and directed GST Authorities to permit them to upload TRAN-I on or before 30.06.2020 and in case GST Authorities fails to do so, the Petitioner would be at liberty to avail ITC in GSTR-3B of July 2020.

In the prsent case the petitioner had also challenged vires of Rule 117(1A), however High Court did not find it appropriate to declare it invalid.

AMBA INDUSTRIAL CORPORATION vs. UNION OF INDIA
(Punjan & Haryana High Court)

The Petitioner has challenged vires of Rule 117(1A) of CGST Act, 2017 and seeking direction to Respondent to permit Petitioner to electronically upload form TRAN-I or avail ITC in GSTR-3B.

The Petitioner is engaged in the business of trading of S.S. Flats and registered with GST Authorities. The Petitioner prior to 01.07.2017 i.e. date of introduction of GST was registered under Central Excise Act, 1944 as a dealer/trader. The Petitioner purchased S.S. Flats and Scrap on payment of Excise Duty amounting to ₹ 10,36,201/-. The Petitioner to carry forward unutilized CENVAT Credit, in terms of Section 140 of CGST Act read with Rule 117 (1) was required to upload TRAN-I on the official portal of Respondent, however Petitioner failed to upload TRAN-I by last date.

Held by High Court

The Petitioner has challenged vires of Rule 117 (1A), however we do not think it appropriate to declare it invalid as we are of the considered opinion that Petitioner is entitled to carry forward Cenvat Credit accrued under Central Excise Act, 1944. The Respondents have repeatedly extended date to file TRAN-I where there was technical glitch as per their understanding. Repeated extensions of last date to file TRAN-I in case of technical glitches as understood by Respondent vindicate claim of the Petitioner that denial of unutilized credit to those dealers who are unable to furnish evidence of attempt to upload TRAN-I would amount to violation of Article 14 as well Article 300A of the Constitution of India.

In view of decision of this Court in the case of Adfert Technologies Pvt. Ltd. and Delhi High Court in the case of Brand Equity Treaties Ltd., present petition deserves to be allowed and accordingly allowed. The Respondents are directed to permit Petitioner to upload TRAN-I on or before 30.06.2020 and in case Respondent fails to do so, the Petitioner would be at liberty to avail ITC in question in GSTR-3B of July 2020. No doubt, the respondents would be at liberty to verify genuineness of claim(s) made by Petitioner.

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