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Cenvat Credit via TRAN 1 filing can be

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Cenvat Credit via TRAN 1 filing can be

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  1. Cenvat Credit via TRAN 1 filing can be claimed till 30 June 2020

  2.  Legal Reference in case • “Section 140 – Transitional Arrangement of Input Tax Credit” of the CGST Act, 2017 specifies that every registered person is entitled to carried forward CENVAT Credit filed in the return for the period ended on 30.06.2017 subject to fulfillment of specified conditions. • “Rule 117-Tax or duty credit forward under any existing law or on goods held in stock on the appointed day” specifies: • Every registered person entitled to take credit under section 140 shall file an electronic declaration in GST TRAN-01 within 90 days from 01.07.2017. • Further, the commissioner may extend such period of 90 days by a further period not exceeding 90 days. • Commissioner may further extend the due date of filing of GST TRAN-01 by a further period, not beyond 31.03.2019 for such registered persons who failed to file a declaration by 27.12.2019 due to technical glitches.  (Sub-Section (1A) of Section 117 inserted)

  3.  Contention of the petitioners – The time limit for GST TRAN 1 filing is a procedural condition rather than a mandatory provision • GST System at the relevant point of time or even today is in a nascent “Trial and Error” phase. Therefore, petitioners can’t be made suffer due inefficiency in the system of respondent. • The CENVAT credit is the property of the petitioner which is a vested right and very much protected constitutionally through the Article 300A of the Constitution.  • The petitioners claimed that the government can’t take away such vested right on account of inability to fulfil any conditions that are too procedural in nature. 

  4.  The Union of India and ORS submitted- Accumulated CENVAT Credit is not a vested right and can’t be claim to perpetuity • The respondent demolished all the claims of petitioners as petitioners could not show any significant proof which exhibits their claim for technical glitch. • Petitioners do not deserve any sympathy; it exhibited a casual approach on part of the petitioner in GST form TRAN 1 filing.  • In all earlier precedents, the extension was granted as there existed some technical glitch due to which GST TRAN 1 filing could not be filed within time. • In the given case, petitioners filed GST TRAN 1 filing for the first time after the expiry of the due date. • Further, Rule 117 is also valid as section 164(1) of CGST Act, 2017 authorises the government to make rules for carrying out provisions of the act on recommendation of council

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