Page 185 - GSTL_2nd April 2020_Vol 35_Part 1

2020 ] NODAL OFFICER v. GOODS AND SERVICES TAX COUNCIL 87
Cenvat credit rules was a vested right. By virtue of clause (iv) of sub-section
(3) of Section 140 such right has been taken away with retrospective effect
in relation to goods which were purchased prior to one year from the ap-
pointed day. This retrospectivity given to the provision has no rational or
reasonable basis for imposing of the condition. The reasons cited in limiting
the exercise of rights have no co-relation with the advent of GST regime.
Same factors, parameters and considerations of “in order to co-relate the
goods or administrative convenience” prevailed even under the Central Ex-
cise Act and the Cenvat Credit Rules when no such restriction was imposed
on enjoyment of Cenvat credit in relation to goods purchased prior to one
year.”
4.3 It is vehemently submitted by Mr. Shraff, the Learned Counsel for
the respondents herein that the principle underlying in Filco Trade Centre Pvt. Ltd.
(supra) would be a binding precedent in a case which comes up for decision sub-
sequently. A decision takes its colour from the question involved in the case in
which it is rendered. To substantiate his submission, the Learned Counsel has
placed reliance on the judgment of the Supreme Court in the case of The Division-
al Controller, KSRTC v. Mahadev Shetty and Ors. reported in (2003) 7 SCC 197.
4.4 It is vehemently submitted by the Learned Counsel for the re-
spondents that the principal question involved in the case of Filco Trade Centre
Pvt. Ltd. (supra) was whether transitional credit is a vested right or substantive
right. It is further submitted that in the cases of Willowood Chemicals Pvt. Ltd. (su-
pra) and Jay Chemicals Industries Ltd. (supra), a diametrically opposite view has
been taken by the Court than in the case of Filco Trade Centre Pvt. Ltd. (supra). It
is submitted that the view taken by the co-ordinate Bench is correct and the said
judgment is followed by the High Court of Punjab and Haryana in the case of
Adfert Technologies (P.) Ltd. v. Union of India reported in (2019) 111 taxmann.com
27 = 2020 (32) G.S.T.L. 726 (P&H), by the Karnataka High Court in the case of
Asiad Paints Ltd. v. Union of India reported in (2020) 113 taxmann.com 82 = 2020
(34) G.S.T.L. 50 (Kar.), by the Delhi High Court in the case of Aadinath Industries
v. Union of India reported in (2019) 110 taxmann.com 420 = 2019 (30) G.S.T.L. 478
(Del.). It is submitted by the Learned Counsel that the same view is taken by the
Delhi High Court in the cases of Triveni Needles (P.) Ltd. v. Union of India reported
in (2020) 113 taxmann.com 223 and Lease Plan India (P.) Ltd. v. Government of Na-
tional Capital Territory of Delhi reported in (2019) 110 taxmann.com 423.
5. Having heard the Learned Counsel appearing for the parties and
having perused the materials on record, we find substance in the submissions
made by Mr. Shraff, the Learned Counsel for the respondents herein. The appli-
cants have relied on the case of Willowood Chemicals Pvt. Ltd. (supra). In that case,
the vires of Section 164 of the CGST Act, 2017 was challenged and it was 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, wherein the co-
ordinate Bench had observed that the time limit provision contained in Rule 117
of the CGST Rules, 2017 is annihilated and cannot be seen as merely technical in
nature and the petition was dismissed. While in the case of Jay Chemical Industries
Ltd. (supra), the co-ordinate Bench had relied on the judgment of Willowood
Chemicals Pvt. Ltd. (supra) and stated that the Bench do not find any scope for
directing the respondents to allow the petitioners to correct the TRAN-1 declara-
tion already made. It was also observed that limited extension has been granted
to cover cases where genuine hardships were felt in uploading said declaration
GST LAW TIMES  2nd April 2020  249