Page 80 - GSTL_7th May 2020_Vol 36_Part 1

38 GST LAW TIMES [ Vol. 36
Arrangements for Input Tax Credit’. The words used provide a clue to the nature
of this provision. The word ‘arrangement’ means action, process, plan. ‘Transi-
tion’ means a process or period changing from one state or condition to another
[Concise Oxford English Dictionary 11th Edition, Oxford University Press.].
Thus, the plain language understanding of these two phrases, juxtaposed, is a
process of regulating the change from one position to another. Under this Chap-
ter, the Legislature has devised an arrangement during the transitional period
from the earlier tax system to GST regime. This transitionary provision is a
unique legislative provision and merits different approach by the Courts.
29. The amplitude of rule making power is regulated by and is condi-
tional upon the phraseology of the provision of the Act conferring it. If the provi-
sion granting rule making power is couched in widest terms, then the doctrine of
ultra vires cannot be casually applied.
30. Thus now to examine the phraseology used in Section 164 of the
Act. Section 164 reads thus :
“Section 164. Power of Government to make rules. - (1) The Govern-
ment may, on the recommendations of the Council, by notification, make
rules for carrying out the provisions of this Act.
(2) Without prejudice to the generality of the provisions of sub-section (1),
the Government may make rules for all or any of the matters which by this
Act are required to be, or may be, prescribed or in respect of which provi-
sions are to be or may be made by rules.
(3) The power to make rules conferred by this section shall include the
power to give retrospective effect to the rules or any of them from a date
not earlier than the date on which the provisions of this Act come into force.
(4) Any rules made under sub-section (1) or sub-section (2) may provide
that a contravention thereof shall be liable to a penalty not exceeding ten
thousand rupees.”
31. Section 164(1) empowers the Government, on the recommendation
of the GST Council, to make rules for carrying out the provisions of the Act. Sub-
section (3) declares that power to make a rule under this section also include the
power to give retrospective effect. A power to levy penalty in the contravention
is declared in sub-section (4). Sub-section (2) is in most extensive terms. The
Government can make rules for all or any of the matters which by this Act are
required to be, or may be prescribed or in respect of which provisions are to be
or may be made by rules. It is clear from reading Section 164(2), that the Gov-
ernment has the power to make rules not only for the matters already prescribed
but those may be prescribed in future or in respect of which provisions are to be
made by rules. Thus, Section 164 governs the most comprehensive range of rule-
making power.
32. The reason behind granting an extensive range of rule-making
power under this Act is not difficult to comprehend. It is because of the nature of
the legislation in question. GST has overhauled the existing multiple tax regimes
into a single tax. This a first of its kind in the country. Since the system and the
principles under it are new, quick adaption to the peculiar situations that may
arise is crucial. It is necessary that the system is dynamic to keep pace with tech-
nological and commercial developments. It should be flexible to meet the emerg-
ing challenges to the revenue needs on an ongoing basis. It is for this flexibility
that the Legislature has conferred an extensive rule-making power.

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