2018 (9) TMI 1474 - HC - GST

Unable to file TRAN 1 electronically - transitional credit - transition to GST Regime - petition could not file returns despite genuine efforts - Held that - GST is a new progressive levy. One of the progressive ideal of GST is to avoid cascading taxes. GST Laws contemplate seamless flow of tax credits on all eligible inputs. The input tax credits in TRAN 1 are the credits legitimately accrued in the GST transition. The due date contemplated under the laws to claim the transitional credit is procedural in nature - the petitioner has made genuine efforts for filing returns not only through online but also manually, this Court is of the view that the petitioner may be granted the relief as prayed for. This writ petition is disposed of, with a direction to the respondents either to open the portal, so as to enable the petitioner to file the TRAN 1 electronically for claiming the transitional credit or accept the manually filed TRAN 1, dated 31.01.2018, and allow the input credits - petition disposed off.

Summary

Issues:
- Petition seeking mandamus for re-opening online submission of GST TRAN 1 or manual acceptance
- Technical glitches preventing timely filing
- Efforts to address grievances through grievance redressal portal and manual filing
- Circular issued by Government addressing technical issues and grievances
- Comparison with relief granted by other High Courts
- Recognition of genuine grievances by the Union Government
- Justification for granting relief to the petitioner
- Interpretation of GST laws and transitional credit provisions
- Decision to grant relief to the petitioner

Analysis:
The petitioner, a Company involved in importing, processing, trading, and exporting cashew nuts, sought a mandamus to direct the respondents to either re-open the online submission of GST TRAN 1 or accept the manually filed form to claim transitional credit under GST. The petitioner faced technical glitches on the GSTN portal, preventing timely filing before the due date of 27.12.2017. Despite attempts through the grievance redressal portal and manual filing on 31.01.2018, no resolution was achieved. The Government issued a circular to address technical issues, appoint Nodal Officers, and facilitate filing, but the petitioner claimed that no Nodal Officer was appointed. The petitioner cited decisions from various High Courts where relief was granted to taxpayers facing similar issues.

The Court noted that relief had been granted in favor of aggrieved petitioners in other cases and acknowledged the genuine nature of the grievances faced by taxpayers. The circular by the Union Government recognized the challenges faced by taxpayers and provided guidelines for those who attempted to file before the due date. The Court emphasized the importance of transitional credits in the GST regime and highlighted that procedural grounds should not deny legitimate credits accrued during the transition. Considering the petitioner's genuine efforts to file returns both online and manually, the Court deemed it appropriate to grant the relief sought.

In conclusion, the Court disposed of the writ petition by directing the respondents to either re-open the portal for electronic filing of TRAN 1 or accept the manually filed form dated 31.01.2018. The Court instructed the authorities to process the input credits if found eligible in law. The decision was based on the special circumstances of the case and was not intended to set a precedent. No costs were awarded in this matter.