Akil Kureshi, J.

The petitioners have challenged constitutionality of second proviso to Section 140 [1] of the Gujarat Goods and Services Tax Act, 2017 ["GGST Act" for short]. The petitioners have also challenged the vires of Rule 117 of the Central Goods and Services Tax Rules, 2017 ["CGST Rules" for short] and Rule 117 of the Gujarat Goods and Service Tax Rules, 2017 ["GGST Rules" for short]. The petitioners have prayed that the respondents be directed to allow the petitioners to carry forward CENVAT credit in the electronic credit ledger, available as on 30th June 2017 in terms of Section 140 [3] of the Central Goods and Services Tax Act, 2017 ["CGST Act" for short]. Similar direction is sought in connection with the carry forward of eligible credit of State tax ie., the Value Added Tax ["VAT" for short] available as on 30th June 2017. We may record that the petitioners have also in the prayer clause, included the challenge to the vires of Section 164 of the CGST Act. However, no contentions were raised with respect to this last challenge. We would, therefore, not elaborate on this aspect in the judgment.

2. The petitioners' prayers arise in the following background :

2.1 Petitioner no. 1 is a company registered under the Companies Act, 1956. The petitioner no. 2 is a Director of the company. The petitioner no. 1 is registered under the CGST as well as GGST Acts. Previously, the petitioner no. 1-Company was registered under the Gujarat Value Added Tax Act, 2003 ["GVAT" for short]. With the advent of GST regime with effect from 1st July 2017, the company had to migrate to the new tax structure. The newly framed statutes for such purpose include transitional provisions, enabling dealers to carry forward tax credits available to them as on 30th June 2017. Section 140 of the CGST Act lays down conditions for carry forward of such tax credit. Section 164 of the CGST Act is a rule making provision empowering the Government to frame the rules for the purpose of carrying out provisions of the Act. In exercise of such powers, the Central Government has framed CGST Rules. Rule 117 contained therein pertains to carry forward of tax credits under the existing law. Sub-rule [1] thereof envisages that every registered person entitled to take credit of input tax under Section 140, shall submit a declaration electronically in Form GST Tran-1 within ninety days of the appointed day. This time limit was extended from time to time. The final extension was granted upto 27.12.2017, beyond which the respondents did not accept any further declarations.

2.2 Likewise, Section 140 of the GGST Act also envisages carry forward of the tax credits available to a dealer as on 30th June 2017; subject to certain conditions. Rule 117 of the GGST Rules also contains a provision for filing declaration electronically of the tax credit which, as initially prescribed, had to be within ninety days from the appointed day. This was also extended simultaneously with the CGST finally upto 27th December 2017 and beyond which there was no further extension.

2.3 Case of the petitioners is that in terms of Rule 117 of the CGST Rules, the petitioners tried to upload the declaration in TRAN-1 on the official portal on 27.12.2017, however, due to technical glitches in the portal, the petitioners could not upload the declaration. Similar difficulties were experienced by dealers across the country. The petitioners, therefore, approached the concerned authorities on 28.12.2017 and submitted physical declaration in the proper format. The authorities, however, conveyed that they have no power to accept physical declarations.

3. In this background, broadly stated, the petitioners' grievances are as under :

[i] On account of technical glitches in the Government portal, despite efforts made by the petitioners for filing the declaration electronically, the same could not be done within extended time for no fault of the petitioners. Thus, the tax credit available in the accounts as