“Emerson Process Management” Inter State ITC Transfer Permissible

The Gujarat High Court settles a critical GST controversy by affirming that cross-State transfer of ITC in cases of amalgamation is legally permissible.

It rejects the GST portal restriction requiring same-State registration as ultra vires the statute and holds that administrative or technological constraints cannot defeat substantive rights. 

The Court directs manual processing of ITC transfer until system-level corrections are implemented, reinforcing the primacy of statute over system design.