Page 99 - GSTL_2nd July 2020 _Vol 38_Part 1

2020 ] BRAND EQUITY TREATIES LTD. v. UNION OF INDIA 17
Chemicals Pvt. Ltd. v. Union of India - 2018 (19) G.S.T.L. 228 (Guj.), and ALD Auto-
motive Pvt. Ltd. v. Commercial Tax Officer - 2018 (364) E.L.T. 3 (S.C.).
Analysis and Conclusion
12. On 1st July, 2017, the new indirect tax regime was introduced in the
country by way of enactments, including the Central Goods and Services Tax
Act, 2017 (CGST Act). The CGST Act introduced transitionary provisions to ena-
ble the taxpayers to migrate from the erstwhile indirect tax regime to the new
GST regime. Section 140 of the CGST Act deals with the transitionary provisions.
Section 140 has several sub-clauses, however, since all the four petitioners are
covered by sub-clause (1) of the Section 140, we are focusing on the said provi-
sion alone, and the same reads as under :
“140. (1) A registered person, other than a person opting to pay tax under
section 10, shall be entitled to take, in his electronic credit ledger, the
amount of Cenvat credit carried forward in the return relating to the period
ending with the day immediately preceding the appointed day, furnished
by him under the existing law in such manner as may be prescribed :
Provided that the registered person shall not be allowed to take credit in
the following circumstances, namely :-
(i) where the said amount of credit is not admissible as input tax
credit under this Act; or
(ii) where he has not furnished all the returns required under the
existing law for the period of six months immediately preced-
ing the appointed date; or
(iii) where the said amount of credit relates to goods manufac-
tured and cleared under such exemption notifications as are
notified by the Government.”
13. In pursuance of the above noted provision, respondent No. 1
framed the Central Goods and Services Tax Rules, 2017 (‘CGST Rules’). Rule 117
of the said rules imposed a time limit of 90 days for availing benefit of the accu-
mulated Cenvat credit as provided under Section 140(1) in its input tax credit
register under the CGST Act. The said Rule reads as under :
“117. Tax or duty credit carried forward under any existing law or on
goods held in stock on the appointed day. - (1) Every registered person
entitled to take credit of input tax under section 140 shall, within ninety
days of the appointed day, submit a declaration electronically in FORM
GST TRAN-1, duly signed, on the common portal specifying therein, sepa-
rately, the amount of input tax credit of eligible duties and taxes, as defined
in Explanation 2 to section 140, to which he is entitled under the provisions
of the said section :
Provided that the Commissioner may, on the recommendations of the
Council, extend the period of ninety days by a further period not exceeding
ninety days :
Provided further that where the inputs have been received from an Export
Oriented Unit or a unit located in Electronic Hardware Technology Park,
the credit shall be allowed to the extent as provided in sub-rule (7) of rule 2
of the CENVAT Credit Rules, 2004.

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