ITC is a vested right: Gujrat High Court on tran1,2
ITC is a vested right, cant be taken away by a procedural provision:
ITC is a vested right of the taxpayer. This right cant be curtailed by a procedural provision. Gujrat high court held in the case of M/s Siddhartha enterprises Vs Nodal officer. Tran one issues are addressed many times by the courts in India. The reason was the abrupt opening and closing down of the form by the government.
Many taxpayers in India lost their transitional ITC. The reason behind that was issued on GSTIN portal. In some cases, lack of awareness was also the main issue. Once the time limit for filing the form was gone. Taxpayers lost their transitional ITC.
In many cases, the High courts allowed taxpayers to file the manual forms. But this case is different from others. In this one, the court has challenged the validity of rule 117 itself. Even if the procedural collapse is there, vested right to take ITC cant to be taken away from the taxpayer. Especially when they are liable to pay GST on stock carried from the previous regime.
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