2019 (10) TMI 31 - HC - GST

Permission for withdrawal of petition - Input tax credit - input service distribution - allowing credit of GST paid on reverse charge and distribute it to other units - Rule 54(1) of the Central Goods and Service Tax Rules 2017 - HELD THAT - Mr. Chavda states that the Petitioner will file a representation within two weeks from today to the Nodal Officer Commissioner of Central Tax and Central Excise Mumbai-Central Churchgate. This representation would be decided by the Nodal Officer as expeditiously as possible and preferably within period of 4 weeks from the date the application is made. Petition disposed off as withdrawn.

Summary

Issues:
1. Whether the Petitioner's Input Service Distributor (ISD) unit can take credit of GST paid on reverse charge and distribute it to other units for the period before the introduction of Rule 54(1) of the Central Goods and Service Tax Rules, 2017.

Analysis:
1. The Petition sought a writ of mandamus directing the Respondent Nos.1 and 2 to allow the Petitioner's ISD unit to take credit of GST paid on reverse charge and distribute it to other units, arguing that Rule 54(1) was introduced after the relevant period.
2. The counsel for the Petitioner acknowledged the need to file a representation and seek justice under the Central Goods and Services Tax Act, 2017 before the writ could be issued.
3. Consequently, the Petitioner decided to withdraw the Petition to file a representation with the nodal officer within the Commissionerate.
4. The counsel for the Respondents specified that any representation should be filed with the Commissioner of Central Tax & Central Excise, Mumbai-Central, Churchgate.
5. The Petitioner committed to submitting the representation to the Nodal Officer Commissioner of Central Tax and Central Excise Mumbai-Central, Churchgate within two weeks, with a request for expeditious decision-making within four weeks, ensuring adherence to principles of natural justice.
6. The Court disposed of the Petition as withdrawn, emphasizing the importance of following natural justice principles in the decision on the representation.

This detailed analysis highlights the legal arguments, procedural steps, and the ultimate decision taken by the Court regarding the Petitioner's request for GST credit distribution by the ISD unit.