Page 78 - GSTL_6th August 2020_Vol 39_Part 1

4 GST LAW TIMES [ Vol. 39
Blue Bird Pure Pvt. Ltd. v. Union of India — 2019 (29) G.S.T.L. 660 (Del.) — Referred ................ [Para 15]
Brand Equity Treaties Limited v. Union of India
— 2020 (38) G.S.T.L. 10 (Del.) — Referred ....................................................................... [Paras 8, 10, 15]
C. Bright v. District Collector — 2019 SCC Online Mad 2460 — Relied on ..................................... [Para 18]
Jayam & Co. v. Assistant Commissioner — 2018 (19) G.S.T.L. 3 (S.C.) — Relied on ........ [Paras 10, 13, 17]
NELCO Limited v. Union of India — 2020 (36) G.S.T.L. 24 (Bom.) — Relied on .............. [Paras 10, 16, 17]
Sales Tax Officer v. K.I. Abraham — 1967 3 SCR 518 — Referred .................................................... [Para 17]
SKH Sheet Metals Components v. Union of India
— 2020 SCC Online Del 650 — Referred ............................................................................. [Paras 15, 17]
Union of India v. A.K. Pandey — (2009) 10 SCC 552 — Relied on .................................................... [Para 18]
Union of India v. Brand Equity Treaties Ltd. — 2020 (38) G.S.T.L. J24 (S.C.) — Referred ..... [Paras 10, 15]
Willowood Chemical Ltd. v. UOI — 2018 (19) G.S.T.L. 228 (Guj.) — Relied on ............................. [Para 16]
REPRESENTED BY : Shri R. Rajarajan, for the Petitioner.
S/Shri R. Sankaranarayanan, Additional Solicitor
General assisted by K. Venkatasamy Babu and Mo-
hammed Shaffiq Spl. GP (T), for the Respondent.
[Order per : Senthilkumar Ramamoorthy, J.]. - The validity of Rule 117
of the Central Goods and Services Tax Rules, 2017 (the CGST Rules) is under
challenge in this writ petition on the grounds that it is ultra vires Section 140 of
the Central Goods and Services Tax Act, 2017 (the CGST Act) and infringes Arti-
cles 14 and 300A of the Constitution, and the Petitioner further prays that the
Respondents should be directed to permit the Petitioner to file Form GST
TRANS-1 either electronically or manually to claim the transitional input tax
credit of Rs. 4,70,008/-.
2. The Petitioner is a proprietary concern involved in the retail trade of
mobile phones, electrical, electronic, and other items. Earlier, the Petitioner was
registered as a dealer under the Tamil Nadu Value Added Tax Act, 2006 (the
TNVAT Act) and, upon the coming into force of the CGST Act, the Integrated
Goods and Services Tax Act, 2017 (the IGST Act) and the State Goods and Ser-
vices Act, 2017 (the SGST Act) (two or more of which are referred to as the GST
laws) on 1-7-2017, the Petitioner obtained registrations under the GST laws.
When the CGST and SGST Acts were introduced, as a transitional measure, the
carry forward of credit for taxes paid on inputs under previously existing indi-
rect tax laws, which may be referred to as transitional ITC (Transitional ITC), was
enabled by making provision in respect thereof. In terms thereof, according to
the Petitioner, he is entitled to avail Transitional ITC of Rs. 4,62,496/- under the
head of CGST and Rs. 7,512/- under the head of SGST under the respective GST
laws.
3. Section 140 of the CGST Act deals with Transitional ITC under the
CGST Act. The said Section 140, inter alia, reads as under :
“140. Transitional arrangements for input tax credit. - (1) A regis-
tered 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 within such time and in such manner as may be prescribed :
(emphasis added)
Provided that the registered person shall not be allowed to take credit
in the following circumstances, namely :-

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