Issue on Rules 117 and 120A of Central Goods and Services Tax Rules, 2017 being ultra vires to section 140 and 174 of Central Goods and Services Tax Act, 2017 was pending before Supreme Court and decision of same was awaited.

The petition has been listed before this Bench by the Registry in view of the urgency expressed therein. The same has been heard by way of video conferencing.

Present writ petition has been filed seeking a direction to the respondents to allow the petitioner to carry forward in its electronic credit ledger the eligible credit of Rs.6,85,863/- (being the excise duty paid by the petitioner) and the credit of which was available in the books of accounts of the petitioner as on the appointed day i.e. 30th June, 2017.

Learned counsel for the petitioner states that the petitioner could not carry forward this credit for reasons beyond its control due to glitches in the system of the respondents. He submits that Rules 117 and 120A of the Central Goods and Services Tax Rules, 2017 are ultra vires Sections 140 and 174 of the Central Goods and Services Tax Act, 2017. In support of his submission, he relies upon the judgment of this Court Brand Equity Treaties Ltd. & Ors. vs. Union of India, [2020] 5 TMI 171 (Delhi).

Issue notice.

Mr. Asheesh Jain, learned counsel accepts notice on behalf of respondent No.1.

Mr. Harpreet Singh, learned counsel accepts notice on behalf of respondents No.2 and 3.

Let the counter-affidavits be filed within four weeks.

Rejoinder-affidavits, if any, be filed within four weeks thereafter.

To await the judgment of the Supreme Court in Union of India Vs. Brand Equity Treaties Limited & Ors., SLP (C) 7425-7428/2020, list on 16th September, 2020.

The order be uploaded on the website forthwith. Copy of the order be also forwarded to the learned counsel through e-mail.

MANMOHAN, J

SANJEEV NARULA, J

JUNE 23, 2020