UMICORE AUTOCAT INDIA PRIVATE LIMITED v. UNION OF INDIA & ORS. – BOMBAY HIGH COURT
High Court, Bombay
Bharati Dangre, Justice & Nivedita P. Mehta, Justice
UMICORE AUTOCAT INDIA PRIVATE LIMITED
v.
UNION OF INDIA & ORS.
WRIT PETITION NO. 463 of 2024 dated 10.07.2025
Law : GST
Act Name : Central Goods & Services Tax Act, 2017
Relevant Section : Section 9, 15, 16, 18, 22, 24, 25, 98 & 140
Rule Number : Rule 10 & 41
Rule Name : Central Goods & Services Tax Rules, 2017
Decision : In favour of assessee
Transfer of unutilized ITC on merger across States – No restriction under Section 18(3) of CGST Act or Rule 41 – Petitioner newly formed entity due to amalgamation sought transfer of unutilized ITC from transferor entity registered in another State – GST portal denied transfer citing system-generated restriction that both transferor and transferee must be registered in same State/Union Territory – Court held restriction does not emanate from either Section 18(3) of CGST Act, 2017 or Rule 41 of CGST Rules, 2017 – Statutory framework permits transfer of unutilized ITC in cases of merger, demerger, sale, or transfer of business, without imposing any condition related to territorial jurisdiction of GST registrations – Legislature intention must be derived strictly from language used in statute and it is impermissible to read into law limitations not expressly provided – Court emphasized GST law allows seamless credit transfer to facilitate ease of doing business and continuity of tax compliance in business reorganizations – Portal-based denial of ITC transfer on non-statutory grounds is unjustified and contrary to the scheme of the Act – Held: Writ Petition made absolute – Court permit manual transfer from e-credit ledger of transferor to petitioner within six weeks.
Represented By:
Counsel for the Petitioner: Avinash Poddar with Vibhav Amonkar, Advocates
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