The Rajasthan High Court is its recent order in the case of Riddhi Siddhi Home Studios while addressing the transitional credit issue has allowed the petitioner to make an application before the GST Council.
Facts of the case:
The petitioners prayed before the High Court that they may be permitted to file Form TRAN-1 in compliance of Central Goods and Services Tax Act, 2017 read with Central Goods and Services Tax Rules, 2017 in order to enable the petitioners to avail Transitional Credit in Electronic Credit Ledger.
It was also prayed that the respondent authorities should give effect to Form GST TRAN-1 that had been manually submitted to the respondent department to avail relevant Legitimate Input Tax Credit (ITC).
Order of Rajasthan High Court: Deliberation and Ruling on transitional credit
The Court referred to the order dated 12.12.2019 passed by Co-ordinate Division Bench of this Court Principal Seat at Jodhpur in Obelisk Composite Technology LLP Vs. Union of India & Others (D.B. Civil Writ Petition No. 18392/2019) wherein following was adjudged.
We are of the considered view that the challenge to the constitutional validity of Rule 117 no more being res integra, this Court cannot entertain such prayer and accordingly reject the same, however, considering the fact that the Union of India and the Finance Department have extended the period contemplated under Rule 1A of Rule 117 till 31st December, 2019, we grant liberty to the petitioner to make an application before GST Council (through Standing Counsel, who is further requested to hand over the same to the jurisdictional officer) for forwarding the same to the GST Council to issue requisite certificate of recommendation alongwith requisite particulars, evidence and a certified copy of the order instantly and such decision be taken forthwith and if the petitioner’s assertion is found to be correct, the GST Council shall issue necessary recommendation to the Commissioner to enable the petitioner to get the benefit of CENVAT credit within the stipulated time as stipulated by the Union of India i.e on or before 31st December, 2019.
The division judge bench of Justice Chandra Kumar Songara and Justice Sabina in the light of the above decision, granted the liberty to the petitioner to make an application before GST Council through Standing Counsel, who is further requested to hand over the same to the jurisdictional officer for forwarding the same to the GST Council to issue requisite certificate of recommendation alongwith requisite particulars, evidence and a certified copy of the order instantly.
Such decision be taken forthwith and if the petitioner’s assertion is found to be correct, the GST Council shall issue necessary recommendation to the Commissioner to enable the petitioner to get the benefit of CENVAT credit within the stipulated time as stipulated by the Union of India.
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