GST Update | IMP GST case laws-Revision of TRAN-1

Issue: Karnataka High Court allows revision of GST Tran-1 for non-technical errors. (M/s Kongovi Private Limited vs. Union of India- writ petition No.12812/2019 dt.28-03-19)

Hon’ble Karnataka High Court in the matter of M/s. Kongovi Private Ltd vs. Union of India, by relying on the Judgment pronounced by Hon’ble Bombay High Court in the matter of OEN India Ltd (2018 VIL 491 BOM) and Hon’ble Madras High Court in the matter of M/s. Calibre Industries (2018 VIL 428 MAD) upheld and with a direction to the petitioner to approach the jurisdictional Nodal officer and the Nodal officer is directed to consider the grievances of the petitioner in accordance with law in the light of the observations made herein above, in an expedite manner, in any event not later that four weeks from the date of the certified copy of the order, after providing an opportunity of hearing to the petitioner. 

Issue : Constitutional validity of Section 140(3) of CGST Act. (Special Leave Petition Appeal (c) Nos.32709-32710 of 2018 dt.02-01-2019)

S.140(3) provides that registered person shall be entitled to take, in his electronic credit ledger, credit of eligible duties 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 conditions inserted in clauses (i) to (v). The condition stipulated in clause (iv) was regarding such invoices or other prescribed documents which were issued not earlier that twelve months immediately preceding the appointed day i.e.01-Jul-2017

Hon’ble Bombay High Court in the matter of Evergreen Seamless Pipes and Tubes Pvt. Ltd & Others vs. Union of India & Others upheld that such provisions are constitutionally valid. However, Hon’ble Gujarat High Court in the matter of Filco Trade Centre upheld that clause (iv) of sub-section (3) of section 140 unconstitutional, and therefore, struck down the same.

However, the GST department had filed the Special Leave Petition against the pronouncement of Filco Trade Centre and Hon’ble Supreme Court SLP was admitted and operation of the impugned judgment shall remain stayed till the disposal of said SLP.