2018 (12) TMI 1083 - HC - GST

Extension of time period for filing GST Tran-1 - input tax credit - 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 application of the petitioner manually and pass orders on it after due verification of the credits as claimed by the petitioner - petition disposed off.

Summary

Issues Involved:
- Petition seeking writ of mandamus to extend time for filing GST Tran-1
- Allegation of electronic system failure causing potential loss of credit
- Respondents' notice of forming a new committee for individual cases
- Granting time for filing counter affidavit and next hearing date
- Directing respondents to reopen portal or entertain application manually

Issue 1: Petition seeking writ of mandamus to extend time for filing GST Tran-1
The petitioner sought 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. The petitioner had filed a complete application for necessary transactional credit but faced issues with the electronic system not responding on the deadline, potentially leading to loss of entitled credit.

Issue 2: Allegation of electronic system failure causing potential loss of credit
The petitioner alleged that despite multiple attempts on the last filing date, the electronic system of the respondent did not respond. This failure was claimed to put the petitioner at risk of losing the credit entitled to them as time passed without the application being processed.

Issue 3: Respondents' notice of forming a new committee for individual cases
The respondents were served with notice of the writ petition and indicated that a new committee might be formed to handle individual cases, with a tentative timeline of addressing them within the next two weeks. However, no exact date was provided regarding when this committee would be operational.

Issue 4: Granting time for filing counter affidavit and next hearing date
The learned counsel for the respondents requested and was granted one month's time to file a counter affidavit. The matter was scheduled for the next hearing on 08.08.2018 to further address the issues raised in the petition.

Issue 5: Directing respondents to reopen portal or entertain application manually
In the interim, the respondents were directed to reopen the portal within two weeks from the order date. If they failed to do so, they were instructed to manually process the petitioner's application and verify the claimed credits promptly. Additionally, the respondents were required to ensure that the petitioner could pay taxes through the regular electronic system maintained for credit use.

This detailed analysis of the judgment highlights the key issues raised in the petition, the responses from the parties involved, and the directives issued by the court to address the concerns regarding the filing of GST Tran-1 and potential loss of credit due to system failures.