2018 (8) TMI 211 - HC - GST

Extension of time period for filing of GST Tran-1 - petitioner has alleged in the petition that despite making several efforts on the last date for filing of the application, the electronic system of the respondent no.2 did not respond, as a result of which the petitioner is likely to suffer loss of the credit that it is entitled to by passage of time - Held that - The respondents are directed to reopen the portal within two weeks from today. In the event they do not do so, they will entertain the GST TRAN-1 of the petitioner manually and pass orders on it after due verification of the credits as claimed by the petitioner - petition allowed.

Summary

Issues:
1. Petitioner seeking writ of mandamus to extend time for filing GST Tran-1.
2. Allegation of electronic system failure on last filing date causing potential loss of credit.
3. Direction to respondents to reopen portal or entertain manual filing if portal not reopened.
4. Order for due verification of credits and allowing payment of taxes on regular electronic system.

Analysis:
1. The petitioner approached the court seeking a writ of mandamus directing the GST council to recommend to the State Government an extension of the time period for filing GST Tran-1 due to the petitioner's application not being entertained on the last date of 27.12.2017. The petitioner aims to file the complete GST TRAN-1 for necessary transactional credit.

2. The petitioner alleged that despite multiple attempts on the last filing date, the electronic system of the respondent did not respond, potentially leading to the petitioner losing out on entitled credit over time. This failure of the system is crucial as it affects the petitioner's ability to claim the credit they are rightfully owed.

3. The court directed the respondents to take action within two weeks by reopening the portal. In case of non-compliance, the respondents were instructed to entertain the GST TRAN-1 of the petitioner manually and subsequently verify the claimed credits. Additionally, the respondents were mandated to allow the petitioner to pay taxes using the regular electronic system, ensuring the credit considerations for the petitioner are maintained.

4. Furthermore, the learned counsel for the respondents was given a month to file a counter affidavit, and the matter was listed for a future date of 14th August, 2018. This timeline indicates the court's intention to monitor the progress of the case and ensure timely resolution of the issues raised by the petitioner regarding the filing of GST Tran-1 and the potential loss of credit due to system failure.