Top 3 Landmarking Judgements under GST

Sunny Jain V. Union of india (Delhi High Court) :

Input tax credit – Electronic credit ledger (ECL) – Blocking of ECL – ECL of petitioner had been blocked for alleged non-payment of consideration to its supplier- Petitioner contended that ECL could not be blocked for eighteen months as provision allows blocking same for maximum period of one year

HELD: As per Rule 37 of CGST Rules read with proviso to section 16(2) of CGST Act, taxpayer is entitled to avail ITC without paying consideration to his supplier and has to reverse same if he fails to make such payment within 180 days – ITC availed before making payment to supplier and expiry of period of 180 days could not make petitioner ineligible – Action of blocking ECL for such extended period was without authority of law – Department was to be directed to unblock ECL with liberty to recover ITC with interest if it was required to be included in output liability of petitioner

Nuvoco Vistas Corporation Limited (Bombay High Court) :

Input Service Distributor Credit – Transitional credit – Petitioner-assessee submitted that it attempted distribution of credit transitioned/reporting of distributed credit by ISD registration to their units/offices but they were not able to complete distribution due to procedural and functional difficulties in relation to GST forms and portal – Respondent – department objected on ground that petitioner had wrongly migrated erstwhile ISD registration to GST regime and transitioned credit which was prohibited as per CGST Act, 2017

HELD : Petitioner-assessee could file GST TRAN-1/revised GST TRAN-1 at units/offices in terms of directions issued by Supreme Court in Union of India v. Filco Trade Centre (P.) Ltd. [2022] 140 taxmann.com 535/63 GSTL 162/92 GST 860 by which Supreme Court directed GST Network to open common portal to rectify TRAN-1 and TRAN-2 to enable different private parties to avail transitional credit in order to aid assessees to overcome procedural/technical hurdles

Ramaraju Surgical Cotton Mills Ltd. V. Additional Commissioner of CGST and Central Excise (MADRAS HIGH COURT) :

Input tax credit – Transfer of credit – GST portal did not allow petitioner to file Form GST ITC- 02A for transferring ITC to its newly registered unit as prescribed time limit of 30 days expired – Petitioner contended that time period had not expired

HELD: Common portal did not allow petitioner to file Form GST ITC-02A within 30 day time period – Petitioner was directed to file fresh petition before IT Grievance Redressal Committee as he was entitled to such credit and said committee will decide petition in light of Pacific Industries Limited case