Whether Input Tax Credit is a vested right and therefore, whether the imposition of a time limit for transitioning or utilisation thereof is constitutionally impermissible
Section 140 of CGST Act, 2017 — Transitional Credit-– The petitioner challenged the constitutional validity of the retrospective amendment to Section 140 of the Act and Rule 117 of the Rules. This court in earlier judgment in M/s. P.R.Mani Electronics v. Union of India and others in W.P.No.8890 of 2020, decided on 13.07.2020, has upheld the validity of Rule 117. The petitioner counsel sought to distinguish the said judgment on the ground that the availment of ITC should be distinguished from the transition and utilization of the ITC. Once an assessee avails of the ITC by complying with all conditions relating thereto, a vested right accrues in favour of such assessee. Further submitted that Section 174(2)(c) of the Act protects such vested right. The respondent counsel submitted that conditions may be imposed for availing a vested right. He also requested time to obtain instructions and file a counter-affidavit.
Held that:- The Hon’ble High Court issued notice and listed the matter on 18.09.2020.
Whether Input Tax Credit is a vested right and therefore, whether the imposition of a time limit for transitioning or utilisation thereof is constitutionally impermissible
Section 140 of CGST Act, 2017 — Transitional Credit-– The petitioner challenged the constitutional validity of the retrospective amendment to Section 140 of the Act and Rule 117 of the Rules. This court in earlier judgment in M/s. P.R.Mani Electronics v. Union of India and others in W.P.No.8890 of 2020, decided on 13.07.2020, has upheld the validity of Rule 117. The petitioner counsel sought to distinguish the said judgment on the ground that the availment of ITC should be distinguished from the transition and utilization of the ITC. Once an assessee avails of the ITC by complying with all conditions relating thereto, a vested right accrues in favour of such assessee. Further submitted that Section 174(2)(c) of the Act protects such vested right. The respondent counsel submitted that conditions may be imposed for availing a vested right. He also requested time to obtain instructions and file a counter-affidavit.
Held that:- The Hon’ble High Court issued notice and listed the matter on 18.09.2020.