Case Details: Clyde Pumps Pvt. Ltd. vs. Union of India (2025) 37 Centax 235 (Del.)
Judiciary and Counsel Details
- Prathiba M. Singh & Shail Jain, JJ.
- S/Shri Prabhat Kumar, A.K. Singh & Ms Rupali Singh, Advs., for the Petitioner.
- S/Shri Piyush Beriwal, Ms Ruchita Srivastava, Advs, Jyotsana Vyas, Ms Amisha P. Dashi, K G Gopalakrishnan & Girish Kaul, Advs., for the Respondent.
Facts of the Case
The petitioner, a GST-registered Input Service Distributor (ISD) with multiple units, submitted that it had a closing pre-GST Cenvat credit for distribution and filed TRAN-1 for transitional credit. The petitioner contended that, due to technical glitches in the GST portal, the credit did not reflect in the Electronic Credit Ledger (ECL) despite representations. The Department contended that the ISD was required to distribute the credit in the same month and that no ECL or TRAN-1 existed for ISDs. The matter was accordingly placed before the High Court.
High Court Held
The High Court held that transitional provisions under Section 140 read with Section 20 of CGST Act/Delhi GST Act and Rules 39 and 117 of CGST Rules/Delhi GST Rules enabled an ISD to distribute pre-GST service credits in the prescribed time and manner, and substantive ITC entitlement could not be defeated by portal non-functionality. Since the credit was disclosed in TRAN-1, the legitimate ITC could not be withheld on technical grounds. The Court directed that the credit be reflected in the ISD’s ECL within three months for onward distribution within one month thereafter. The petition was disposed of in favour of the petitioner.
List of Cases Cited
- Commissioner v. Vision Distribution Pvt Ltd. — SLP (Civil) Diary No. 16998 of 2020, dated 15-2-2021 by Supreme Court — Referred [Para 20]
- Dell International Services India (P.) Ltd. v. UOI — (2025) 27 Centax 231 (Mad.) — Referred [Para 21]
- Siemens Ltd. v. Union of India — 2023 (77) G.S.T.L. 185 (Bom.) = (2023) 9 Centax 421 (Bom.) — Referred [Paras 6, 17]
- Siemens Ltd. v. Union of India — (2024) 16 Centax 112 (Bom.) = 2024 (88) G.S.T.L. 253 (Bom.) — Referred [Paras 6, 17, 18]
- Vision Distribution (P.) Ltd. v. Commissioner — 2020 (34) G.S.T.L. 90 (Del.) — Referred [Para 19]
