Page 44 - GSTL_13th August 2020_Vol 39_Part 2

130 GST LAW TIMES [ Vol. 39
2017 due to inability to file GST TRAN-2 before the due date as provided for in
Rule 117(4) of the CGST/SGST Rules, 2017 is violative of Articles 14, 19(1)(g) and
265 of the Constitution of India and is grossly against the principles of natural
justice and whether the petitioner is entitled to get an opportunity to file the dec-
laration in CGST TRAN-2 in order to be allowed to take transitional Credit on
account of inputs held in stock as on the appointed date.
3. The petitioner was a dealer registered under the West Bengal Value
Added Tax Act, 2003 bearing VAT No. 19520282038. By duly migrating to the
Goods and Services Tax Acts, the petitioner is a registered dealer under the Cen-
tral Goods and Services Tax Act, 2017 (hereinafter referred to as the CGST Act,
2017) and the West Bengal Goods and Services Tax Act, 2017 (hereinafter re-
ferred to as the WBGST Act, 2017) bearing GSTIN - 19AAMFS4896E1ZJ under
both the Acts which was obtained by migration from the previous Acts. The peti-
tioner is a bona fide dealer who carries on business in due compliance of the pro-
visions of the Goods and Services Tax (for brevity, GST) laws in force staying
within the legal ambit of the laws and rules framed thereunder.
4. Mr. Akshat Agarwal, Learned Advocate for the writ petitioner sub-
mits that service has been effected through e-mail. None has entered appearance
on behalf of the respondents. The point in issue can be decided in one go and the
writ petition can be disposed of. The petitioner states that the Government of
India came out with the biggest tax reform in the arena of Indirect Taxation in
the year 2017. On 1st July, 2017, the Government of India gave effect to the CGST
laws of which one was the CGST Act and State of West Bengal passed the
WBGST Act. In the WBGST Act, 2017, Chapter XX provided for Transitional pro-
visions by way of which a registered dealer under CGST was allowed to avail the
claim of Input Tax Credit (for brevity, ITC) as brought for forward from the pre-
vious Acts. Along with the transitional credit as carried forward from the previ-
ous regime(s), the said Chapter XX also provided for allowance of transitional
credit on account of goods held in stock as on the appointed date i.e. 1st July
2017, which is stated under Section 140(3) of the WBGST Act, 2017, hereunder.
“(3) A registered person, who was not liable to be registered under the ex-
isting law or who was engaged in the sale of exempted goods or tax free
goods, by whatever name called or goods which have suffered tax at the
first point of their sale in the State and the subsequent sales of which are not
subject to tax in the State under the existing law but which are liable to tax
under this Act or where the person was entitled to the credit of input tax at
the time of sale of goods, if any, shall be entitled to take, in his electronic
credit ledger, credit of the value added tax in respect of inputs held in stock
and inputs contained in semi-finished or finished goods held in stock on
the appointed day subject to the following conditions namely :-
(i) such inputs or goods are used or intended to be used for mak-
ing taxable supplies under this Act;
(ii) the said registered person is eligible for input tax credit on
such inputs under this Act;
(iii) the said registered person is in possession of invoice or other
prescribed documents evidencing payment of tax under the
existing law in respect of such inputs; and
(iv) such invoices or other prescribed documents were issued not
earlier than twelve months immediately preceding the ap-
pointed. Provided that where a registered person, other than a
manufacturer or a supplier of services, is not in possession of
an invoice or any other documents evidencing payments of
GST LAW TIMES  13th August 2020  44