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for short]. With the advent of GST regime with effect from 1st July  2017, the company had to migrate to the new tax structure. The  newly   framed   statutes   for   such   purpose   include   transitional  provisions, enabling dealers to carry forward tax credits available  to  them   as  on  30th  June 2017. Section 140 of  the CGST  Act  lays  down conditions for carry forward of such tax credit.  Section 164  of   the   CGST   Act   is   a   rule   making   provision   empowering   the  Government to frame   the rules for the purpose of carrying out  provisions   of   the   Act.   In   exercise   of   such   powers,   the   Central  Government has framed CGST Rules. Rule 117 contained therein  pertains   to   carry   forward   of   tax   credits   under   the   existing   law.  Sub­rule [1] thereof envisages that every registered person entitled  to   take   credit   of   input   tax   under   Section   140,   shall   submit   a  declaration electronically in Form GST Tran­1 within ninety days  of the appointed day. This time limit was extended from time to  time.   The   final   extension   was   granted   upto   27.12.2017,   beyond  which the respondents did not accept any further  declarations. 

5.7 In case of  R.K Garg v. Union of India & Ors., reported in  [1981]   4   SCC   675   to   contend   that   in   the   taxing   statutes,   the  legislature enjoys greater latitude.

         C/SCA/4252/2018                                              JUDGMENT



5.8    In the  context of petitioners'  grievance regarding technical 

glitches in the official portal preventing making of declaration, the  Union of India has filed an additional affidavit of one Dr. Ashir  Tyagi,   Commissioner,   CGST dated  11th  September 2018. In such  affidavit, it is stated that the Government of India has come out  with a Circular dated 3rd April 2018 providing certain guidelines to  see   that   genuine   cases   of   difficulties   faced   are   resolved.  Thereafter,   sub­rule   1A   is   inserted   in   Rule   117   by   Notification  dated 10th September 2018, which reads as under :­ "[1A]     Notwithstanding anything contained in sub­rule  [1], the Commissioner may, on the recommendations  of  the Council, extend the date for submitting the declaration  electronically in FORM GST TRAN­1 by a further period  not   beyond   31st  March   2019,   in   respect   of   registered  persons who could not submit the said declaration by the  due   date   on   account   of   technical   difficulties   on   the  common portal and in respect of whom the Council has  made a recommendation for such extension."

5.9 It is stated that corresponding amendment is made in sub­ rule [4], wherein below Clause (b) in sub­clauses (iii), the following  proviso is inserted :

"Provided that the registered persons filing the declaration in FORM GST TRAN-1 in accordance with C/SCA/4252/2018 JUDGMENT sub-rule [1A], may submit the statement in FORM GST TRAN-2 by 30th April 2019."

6. Before examining rival contentions, we may recall that the  Government of India has amended Rule 117 of the CGST Rules by  inserting   sub­rule   [1A]   which   provides   that   notwithstanding  anything   contained   in   sub­rule   [1],   the   Commissioner   may   on  recommendation   of   the   Council,   extend   the   date   of   submitting  declaration   electronically   in   FORM   GST   TRAN­1   by   a   further  period not beyond 31st March 2019, in respect of registered persons  who   could   not   submit   the   said   declaration   by   the   due   date   on  account   of  technical   difficulties on the common portal. Thus,  in  genuine   cases   of   inability   of   a   dealer   to   submit   the   declaration  within   the   time   originally   permitted   on   account   of   technical  difficulties on the common portal, powers have been vested in the  Commissioner to extend the time maximum upto 31st March 2019.  The petitioners' grievance of not being able to file declaration on  account   of   technical   glitches   in   the   portal;   if   genuine   therefore,  could be addressed under this rule. This would take care of the  petitioners' one of the grievances. This   however   does   not   mean  that the petitioners' challenge to  vires  of the statutory provisions  C/SCA/4252/2018 JUDGMENT does not survive. We would, therefore, address such issues raised  by the petitioners.

"117.   Tax or duty credit carried forward under any   existing   law   or   on   goods   held   in   stock   on   the   appointed day :

(1) Every registered person entitled to take credit  or input tax under Section 140 shall,  within ninety  days   of   the   appointed   day,   submit   a   declaration  electronically in FORM GST TRAN­1, duly signed,  on the common portal specifying therein, separately,  the amount of input tax credit to which he is entitled  under the provisions of the said section: