Home Case Index All Cases GST GST + HC GST - 2024 (3) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2024 (3) TMI 272 - BOMBAY HIGH COURTInterpretation of statute - provisions of sub-section (7) of Section 140 of CGST Act - Transition of the Input Tax Credit - petitioners contend that such input tax credit was not permitted to be transitioned and / or to be taken in the electronic credit ledger, although it was statutorily entitled to them, and merely, because there is a defective electronic mechanism to give effect to such input tax credit - HELD THAT:- It would be appropriate that the GST Council considers the issues inter alia the effect that Sub-Section (7) of Section 140 would bring about, on the transition of the input tax credit, being permitted under such provision. More particularly, as it is urged on behalf of the Petitioners, that it is ill-conceivable that the input tax credit which was legitimately available with the petitioners before the appointed day, cannot be permanently lost or lapsed, merely because the GST, machinery does not create an effective procedural mechanism, for such credit to be transferred to the Electronic Credit Ledger (ECL) to be utilized, thereby, creating a situation of such credit being permanently lost. It is also their submission that this can never be the intention of the legislation even on a plain reading of sub-section (7) of Section 140. It is opined that, an appropriate examination of such issues by the GST Council shall assist the Court in taking an appropriate view of the matter. These proceedings adjourned to 9th August 2024.
|