2019 (2) TMI 1958 - HC - GST

Reopening of portal for submission of GST TRAN-1 - transitional CENVAT credit admissible as input tax credit or not - HELD THAT - The Notification dated 10th September, 2018 is not disputed, so far it states that the registered persons filing the declaration in FORM GST TRAN -1 in accordance with subrule (1A), may submit the statement in FORM GST TRAN -2 by 30th April, 2019. As there is no cause of action to file the petition, the petitioner is not entitled to any of the reliefs claimed in the petition - Petition dismissed.

Issues Involved:
- Petitioner's request to re-open the portal for submission of FORM GST TRAN-1
- Petitioner's plea to allow filing of GST TRAN-1 manually
- Petitioner's alternative request for a refund of balance CENVAT credit
- Technical glitches preventing the petitioner from filing GST TRAN-1
- Interpretation of the notification dated 10th September, 2018

Analysis:

1. Re-opening the Portal for Submission of FORM GST TRAN-1:
The petitioner sought a direction from the High Court to compel the respondents to re-open the portal for submission of FORM GST TRAN-1. The petitioner argued that technical glitches on the GSTN Portal prevented the timely filing of the form, leading to the inability to claim transitional CENVAT credit. Despite multiple correspondences with the respondents, the issue remained unresolved, causing financial loss to the petitioner. The petitioner requested the court to intervene in the interest of justice.

2. Allowing Manual Filing of GST TRAN-1:
In the absence of the portal being re-opened, the petitioner requested permission to manually fill and file the GST TRAN-1 form to claim the transitional input tax credit and subsequent credit amounting to ?9,28,526. The petitioner emphasized the necessity of claiming these credits to avoid financial loss and sought the court's direction to enable manual filing if the online portal was not accessible.

3. Alternative Request for Refund of Balance CENVAT Credit:
As an alternative relief, the petitioner asked the court to direct the respondents to refund the balance CENVAT credit that was available before the implementation of Goods and Service Tax. The petitioner highlighted the inability to claim this credit due to technical glitches in the GST portal, amounting to ?9,28,526. This request was made to address the financial impact on the petitioner resulting from the filing difficulties.

4. Technical Glitches and Filing Challenges:
The petitioner, a dealer of Enfield Bullet two-wheelers, faced challenges in uploading the GST TRAN-1 Form on the GSTN Portal due to technical issues before the due date. Despite efforts to comply with the filing requirements and follow instructions, the petitioner encountered obstacles in accessing the portal and completing the necessary filings. This situation led to the petitioner's inability to avail the benefits of Cash Credit and claim the transitional input tax credit, resulting in financial losses.

5. Interpretation of Notification Dated 10th September, 2018:
The legal counsels for both parties referenced the notification issued on 10th September, 2018, which outlined provisions related to the submission of declarations in FORM GST TRAN-1 and FORM GST TRAN-2. While the petitioner's counsel argued for the consideration of the petitioner's request based on the notification, the respondents' counsel contended that the petitioner was not entitled to the reliefs sought in the petition as per the provisions of the notification. The court considered this interpretation and concluded that there was no cause of action to grant the reliefs requested by the petitioner.

In the final judgment, the High Court dismissed the petition, stating that there was no cause of action to provide the reliefs sought by the petitioner based on the interpretation of the notification and the legal arguments presented by both parties.

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