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MANINDRA MOHAN SHRIVASTAVA, MUNNURI LAXMAN
Dharnia Motors, C/o. Jambeshwar Udhyog, Bikaner Road Nokha, Bikaner (Raj) Through Its Proprietor Jitendra Bishnoi S/o. Shri Om Prakash Bishnoi – Appellant
Versus
Union Of India, Through Under Secretary To The Government Of India Department Of Revenue – Respondent
JUDGMENT :
(Manindra Mohan Shrivastava, CJ.)
1. By way of this writ petition filed under Article 226 of the Constitution of India, the petitioner has claimed that he is entitled to transitional credit of excise duty made through Credit Transfer Document (for short, ‘CTD’) by way of filing TRAN-3 without insisting on submission of TRAN-1 declaration within the time stipulated under Rule 117 of the Central Goods and Services Tax Rules, 2017 (for short, ‘the CGST Rules, 2017’).
Relevant Factual Matrix:
2. The factual background giving rise to the present petition, relevant for decision making in the present case, is that the petitioner is a trader dealing in automobiles, motorbikes and other vehicles and registered under the GST Laws having been issued a certificate of registration on 22.09.2017. In the petition, it has been stated that the petitioner is a sub-dealer of Hero MotoCorp Ltd. and engaged in selling motorbikes after procuring them from the primary dealer of Hero MotoCorp Ltd. He being sub-dealer, was not issued direct invoices by the manufacturer- Hero MotoCorp Ltd. and instead, the invoice was issued by the Hero MotoCorp to the primary dealer capturing the incidence of exc
The requirement to submit TRAN-1 for claiming transitional credit under Section 140 of the CGST Act, 2017 is mandatory and cannot be bypassed.
Input Tax Credit (ITC) is a concession/benefit/rebate and the legislature is within its competency to impose certain conditions, including time prescription for availing such right.
The main legal point established in the judgment is that unutilized input tax credit is a vested right and property, and should not be denied on procedural or technical grounds.
The court affirmed the right to Transitional Input Tax Credit under Section 140 and mandated timely verification of claims without delay caused by technical issues.
The court established that procedural timelines should not infringe upon vested rights to claim tax credits, especially in light of technical challenges faced by taxpayers.
Proceedings under Section 74 of the CGST Act cannot be initiated without evidence of fraud or misstatement if prior proceedings under Section 73 have been concluded.
The period prescribed under Rule 117 of the Rules for filing the TRAN-1 Form was merely directory and not mandatory.
Authorities must act reasonably and fairly, ensuring assessees are not deprived of legal benefits due to technical errors in filing forms.
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