Transitional Credit — Section 140 of the CGST Act, 2017 — The petitioner challenged the validity of Rule 117 of the Rules, on the grounds that it is ultra vires Section 140 of the Act. The petitioner further prayed that the Respondents should be directed to permit the Petitioner to file Form GST TRAN–1 either electronically or manually to claim the transitional ITC. The ITC is in the nature of the Petitioner's property and, therefore, the Petitioner cannot be deprived of its property merely because the requisite form could not be submitted within the prescribed time limit. The prescription of such time limit in Rule 117 is ultra vires Section 140 and violates Article 14 and 300-A of the Constitution of India in as much as it deprives the Petitioner of its property by way of ITC.
Held that:- The Hon’ble High Court dismissed the petition and held that Rule 117 specifies that the return in Form GST TRAN-1 is required to be filed electronically on the common portal. This requirement is not satisfied. The Petitioner has completely failed to make out a case to direct the Respondents to permit the Petitioner to file Form GST TRAN-1 and claim the Transitional ITC.—P.R. Mani Electronics Vs. Union of India, The Goods And Service Tax Council, The Principal Chief Commissioner of GST & Central Excise, The Assistant Commissioner of GST & Central Excise [2020] 26 TAXLOK.COM 024 (Madras)