Petitioner is entitled to to claim transitional credit.
Section 140 of the CGST Act, 2017 — Transitional Credit – The Petitioner challenged the retrospective amendment dated 18.05.2020 by which the provision of Section 128 of the Finance Act, 2020 has been inserted with effect from 1st July, 2017 to Section 140 of the Act, 2017 by prescribing a time limit for taking the ITC. The petitioner also sought the benefit of transitional credit of Rs. 6,04,47,033/-. The court observed that by a detailed judgment dated 5th May, 2020 in WP(C) No.196/2019 in the case of petitioner itself, this Court held that Rule 117 which prescribed a time limit for taking the ITC is directory in nature. This Court further held that a period of three years from the appointed date would be the maximum period for availing of such credit. A Special Leave Petition against the judgment is pending before the Hon’ble Supreme Court. The court further observed that judgment of SKH Sheet Metals Components covers the issue in hand. The amendment does not affect the right of the petitioner to claim transitional credit and it would be unnecessary to deal with the Constitutional challenge to it.
Held that:- The Hon’ble High Court held that the petitioner is at liberty to apply for the transitional credit of Rs. 6,04,47,033/- which shall be dealt with by the department and disposed of by the department in accordance with law and subject to the further order of the Hon’ble Supreme Court.
Petitioner is entitled to to claim transitional credit.
Section 140 of the CGST Act, 2017 — Transitional Credit – The Petitioner challenged the retrospective amendment dated 18.05.2020 by which the provision of Section 128 of the Finance Act, 2020 has been inserted with effect from 1st July, 2017 to Section 140 of the Act, 2017 by prescribing a time limit for taking the ITC. The petitioner also sought the benefit of transitional credit of Rs. 6,04,47,033/-. The court observed that by a detailed judgment dated 5th May, 2020 in WP(C) No.196/2019 in the case of petitioner itself, this Court held that Rule 117 which prescribed a time limit for taking the ITC is directory in nature. This Court further held that a period of three years from the appointed date would be the maximum period for availing of such credit. A Special Leave Petition against the judgment is pending before the Hon’ble Supreme Court. The court further observed that judgment of SKH Sheet Metals Components covers the issue in hand. The amendment does not affect the right of the petitioner to claim transitional credit and it would be unnecessary to deal with the Constitutional challenge to it.
Held that:- The Hon’ble High Court held that the petitioner is at liberty to apply for the transitional credit of Rs. 6,04,47,033/- which shall be dealt with by the department and disposed of by the department in accordance with law and subject to the further order of the Hon’ble Supreme Court.