Several Petitioners demand for a smooth migration of CENVAT credit from old indirect tax regime to GST

This judgement addresses several petitions concerning the migration of CENVAT credit from the old indirect tax system to the Goods and Services Tax (GST). The CGST Act, 2017, allows taxpayers to carry forward unutilised CENVAT credit by filing the GST TRAN-1 form. The deadline for filing this form was initially set, with extensions provided, and the court's ruling clarifies aspects of this transitional process.

IN THE HIGH COURT OF DELHI AT NEW DELHI
 
Reserved on: 21st December, 2020
Pronounced on: 27th May, 2021

W.P. (C) 1150/2020 & CM APPL. 3814/2020

SUPER INDIA PAPER PRODUCTS ..... Petitioner

Through: Mr. Mangesh Bhende with Mr.
Digajmaan Mishra and Mr. Akshat
Malpani, Advocates.

versus

UNION OF INDIA THROUGH MINISTRY OF FINANCE,
SECRETARY & ORS. ..... Respondents

Through: Mr. Ravi Prakash, CGSC for R-1
 Mr. Anuj Aggarwal, ASC, GNCTD
with Mr. Shikhar Sheel and
Ms. Ayushi Bansal, Advocates for
R-4 & 5.

W.P. (C) 2326/2020 & CM APPL. 8161/2020 & 32784/2020
M/S THE BRITISH MOTOR CAR COMPANY (1934) PVT LTD.
 ..... Petitioner

Through: None.

versus

UNION OF INDIA THROUGH SECRETARY,
MINISTRY OF FINANCE & ORS. ...... Respondents

Through: Ms. Sunieta Ojha, Advocate.
 Ms. Sonu Bhatnagar, Senior
Standing Counsel with Ms. Venus
Malhotra, Mr. Vaibhav Joshi
Ms. Mallika Joshi Advocate for R-2
to R-5.
Mr. Anuj Aggarwal, ASC, GNCTD
with Mr. Shikhar Sheel and
Ms. Ayushi Bansal, Advocates.

W.P. (C) 12486/2019

BENLON INDIA LTD. .... Petitioner

Through: Mr. Vinay Gupta, Advocate.

versus

UNION OF INDIA & ORS. ...... Respondents

Through: Mr. Vivek Goyal, CGSC for UOI.
Mr. Harpreet Singh, Sr. Standing
Counsel with Ms. Suhani Mathur,
Advocate for GST.
Mr. Anuj Aggarwal, ASC, GNCTD
with Mr. Shikhar Sheel and
Ms. Ayushi Bansal, Advocates.

W.P.(C) 1224/2020
LA PRISTINE BIOCEUTICALS PVT. LTD. ..... Petitioner

Through: None.

versus

UNION OF INDIA & ORS. ...... Respondents

Through: Mr. Jitesh Vikram Srivastava with
Mr. Prajesh Vikram Srivastava,
Advocates for UOI.
Mr. Harpreet Singh, Sr. Standing
Counsel with Ms. Suhani Mathur,
Advocate for GST.
Mr. Anuj Aggarwal, ASC, GNCTD
with Mr. Shikhar Sheel and
Ms. Ayushi Bansal, Advocates
R-4,5&6. 

W.P.(C) 3759/2020
S. S. AUTOMOTIVE PVT. LTD. ..... Petitioner

Through: Mr. Vineet Bhatia, Advocate

 versus

UNION OF INDIA & ORS. ..... Respondents

Through: Mr. Ajay Digpaul, CGSC and Mr.
Kamal R. Digpaul, Advocate for R1/UOI.
Mr. Anuj Aggarwal, ASC, GNCTD
with Mr. Shikhar Sheel and
Ms. Ayushi Bansal, Advocates
for R-2.
Mr. Sandeep Kumar with
Mr. Kunal Sharma, Sr. Standing
Counsel for Income Tax
Department.

W.P.(C) 3760/2020

ALSTONE INTERNATIONAL ..... Petitioner

Through: Mr. Vineet Bhatia, Advocate

versus

UNION OF INDIA & ORS. .... Respondents
Through: Mr. Ajay Digpaul, CGSC and
Mr. Kamal R. Digpaul, Advocate
for R-1/UOI.
Mr. Sandeep Kumar with
Mr. Kunal Sharma, Sr. Standing
Counsel for Income Tax
Department.
Mr. Anuj Aggarwal, ASC, GNCTD
with Mr. Shikhar Sheel and
Ms. Ayushi Bansal, Advocates
for R-4.

W.P.(C) 3761/2020

ESS AAR AUTOMOTIVE PVT. LTD. ..... Petitioner

Through: Mr. Vineet Bhatia, Advocate

versus

UNION OF INDIA & ORS. ..... Respondents
Through: Mr. Anil Soni, CGSC with Mr.
Devesh Dubey, Advocate for R-1.
Mr. Anuj Aggarwal, ASC, GNCTD
with Mr. Shikhar Sheel and
Ms. Ayushi Bansal, Advocates
for R-2.

W.P.(C) 3766/2020

SHRINIWAS TIN INDUSTRIES PVT. LTD. ..... Petitioner

Through: Mr. Sandeep Sethi, Sr. Advocate
with Mr. Puneet Rai and Mr.
Vaibhav Kulkarni, Advocates.

versus

UNION OF INDIA & ORS. ..... Respondents

Through: Mr. Anil Soni, CGSC with Mr.
Devesh Dubey, Advocate for
Respondents No.1 and 2.
 Ms. Sonu Bhatnagar, Senior
Standing Counsel with Ms. Venus
Malhotra, Mr. Vaibhav Joshi
Ms. Mallika Joshi Advocate for R-3
& 5.
Mr. Anuj Aggarwal, ASC, GNCTD
with Mr. Shikhar Sheel and
Ms. Ayushi Bansal, Advocates.
for R-4.

W.P.(C) 12162/2019 & CM APPL.49749/2019

JUDGMENT

[VIA VIDEO CONFERENCING]

SANJEEV NARULA, J.

1. The common thread in this present batch of petitions is that they pertain to transition of CENVAT credit from the erstwhile indirect tax regime to the present Goods and Services Tax (‘GST’) system by virtue of a right specifically conferred on the taxpayers for smooth migration into the new indirect tax regime.

I. BRIEF BACKGROUND:

2. Chapter XX of the CGST Act, 2017 (hereinafter “the Act”), which deals with transitional provisions, allows for transition of unutilized CENVAT credit available under the previous regime. The statute provides for filing form GST TRAN-1 (hereinafter “TRAN-1 Form”) by furnishing details of amount of CENVAT credit sought to be carried forward in the return, relating to the period ending with the day immediately preceding the appointed date, i.e., 1st July, 2017. The last extended date for filing the TRAN-1 Form, was prescribed as 27th December, 2017. 

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