SIEMENS LTD. Vs. UNION OF INDIA

JUDGEMENT

(1.) In the light of the order dtd. 24/3/2023 passed by the Supreme Court in the proceedings of Special Leave Petition (Civil) Diary No (s). 7213 of 2023 ( Union of India & Ors. vs. Siemens Ltd. & Ors .), we have taken up the present proceedings for hearing on merits.

(2.) Mr. Shridharan, learned senior counsel as also Mr. Rohan Shah, learned counsel for the petitioners have made preliminary submissions for sometime. Learned senior counsel for the petitioners have drawn our attention to the "Transitional Provisions" as contained in Sec. 140 of the Central Goods & Services Act, 2017 and more particularly, to sub-sec. (7) of Sec. 140 , which is a non-obstante provision, permitting the assessee to have the benefit of the Input Tax Credit on any services prior to the appointed date by the Input Service Distributor" to be eligible for distribution as permissible under the CGST Act, even if the invoices were received on or after the appointed date. It is submitted that such provision would make it obligatory on the revenue to grant credit benefit to the registered "Input Service Distributors" and to which category the petitioner before us belong. For convenience, we extract the provisions of sub-sec. (7) of Sec. 140, which reads thus: Sec. 140 . Transitional arrangements for input tax credit.--

(3.) We have been informed that such substantive provision is sought to be interpreted and/or controlled by the revenue by applying the different "forms" and/or the electronic enabling machinery which is created subsequent to the legislature, enacting the said provision. It is submitted that by such approach, the provision itself is being rendered negatory, as the petitioners who fall within the category of registered input service distributors, are prevented from taking benefit of input tax credit which the law itself permits, which also has absolute recognition under several provisions of the CGST Act.