Case Details: Umicore Autocat India Pvt. Ltd. Versus Union of India (2025) 32 Centax 416 (Bom.)
Judiciary and Counsel Details
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BHARATI DANGRE and NIVEDITA P. MEHTA, JJ.
- S/Shri Avinash Poddar and Vibhav Amonkar, Advs. for the Petitioner.
- Ms. Asha Desai, Sr. Standing Counsel, S/Shri Devidas J. Pangam, Adv. General and Shubham Priolkar, Addl. Govt. Adv. for the Respondent.
Facts of the Case
The issue in the present case arose pursuant to the amalgamation of two companies registered in different States under the GST regime—one in Maharashtra and the other in Goa. The petitioner, being the amalgamated entity, sought transfer of unutilized input tax credit (ITC) available in the electronic credit ledger of the transferor company by filing FORM GST ITC-02, in accordance with Section 18(3) of the CGST Act read with Rule 41 of the CGST Rules. However, the GST portal refused to process the request on the ground that the transferor and transferee were not located within the same State or Union Territory. The petitioner contended that the statute and rules do not prescribe any such territorial limitation and that, in case of amalgamation, the business and associated liabilities, including ITC, vest with the amalgamated entity by operation of law. The matter was accordingly placed before the High Court of Bombay.
High Court Held
The Bombay High Court accepted the petitioner’s contention and held that the GST law permits transfer of unutilized ITC pursuant to amalgamation even where the entities involved are registered in different States. The Court clarified that Section 18(3) read with Rule 41 merely requires a change in the constitution of the registered person and an express provision for transfer of liabilities, conditions which were duly fulfilled in the present case. The denial of credit transfer based solely on State boundaries was held to be legally untenable. However, recognizing the State-specific nature of SGST and the consequent revenue implications, the Court restricted the transfer to CGST and IGST components only.
