Rule 117 challenge over transitional CENVAT credit remains undecided pending affidavits and further hearing.

Rule 117 of the CGST Rules, 2017 and the corresponding West Bengal GST Rules, 2017 was challenged as being ultra vires Section 140 of the CGST Act, 2017, with the petitioner seeking credit of CENVAT applications in the electronic credit ledger. The Court did not decide the constitutional or statutory merits at this stage and instead granted the respondents time to file affidavits. The matter was directed to be listed for hearing, so no final determination was made on the validity challenge or the requested relief.

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Issues: Whether the time limit prescribed under Rule 117 of the Central Goods and Services Tax Rules, 2017 and Rule 117 of the West Bengal Goods and Services Tax Rules, 2017 is ultra vires Section 140 of the Central Goods and Services Tax Act, 2017, and whether credit of CENVAT applications in the electronic credit ledger should be granted.

Analysis: The petition raised substantive constitutional and statutory objections, but the Court did not adjudicate the merits at this stage. An opportunity was given to the respondents to file affidavits and the matter was directed to be listed for hearing.

Outcome: No final determination was made on the challenge or the relief sought.

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