2019 (2) TMI 1341 - HC - GST

Extension of time period for filing of GST Tran-1 - input tax credit - migration to GST regime - 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 open the portal before 31st of March 2019. 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. They will also ensure that the petitioner is allowed to pay its taxes on the regular electronic system also which is being maintained for use of the credit likely to be considered for the petitioner. List this matter on 25.03.2019.

Summary

Issues:
- Petitioner seeking writ of mandamus to extend time period for filing GST Tran-1.
- Allegation of electronic system failure on last filing date causing potential loss of credit.
- Direction sought for manual filing and verification of credits if portal not opened by specified date.

Analysis:
The petitioner approached the court seeking a writ of mandamus to direct the GST council to extend the time period for filing GST Tran-1 due to alleged system failure on the last filing date. The petitioner claimed that despite multiple attempts, the electronic system did not respond, potentially leading to a loss of entitled credit. The court acknowledged the petitioner's concerns and directed the respondents to open the portal before a specified date. In case of failure to do so, the respondents were instructed to entertain the GST TRAN-1 manually and verify the credits claimed by the petitioner. Additionally, the court ordered that the petitioner should be allowed to pay taxes using the regular electronic system to utilize the credit under consideration.

The court's decision aimed to address the petitioner's predicament caused by the system failure and ensure that the petitioner does not suffer any loss of credit due to technical issues. By directing the manual filing and verification process, the court sought to safeguard the petitioner's rights and entitlements under the GST regulations. The court's directive for the respondents to open the portal by a specified date demonstrated a proactive approach to resolving the issue promptly and efficiently.

Furthermore, the court instructed the respondents to allow the petitioner to pay taxes using the regular electronic system, emphasizing the importance of maintaining the petitioner's ability to utilize the credit that may be considered valid. This aspect of the judgment highlighted the court's commitment to ensuring that the petitioner's rights are protected and that any technical hindrances are overcome to facilitate a fair resolution in accordance with the applicable laws and regulations.

In conclusion, the judgment provided a comprehensive solution to the issues raised by the petitioner regarding the filing of GST Tran-1 and the potential loss of credit due to system failure. By issuing specific directives to the respondents and setting a timeline for compliance, the court effectively addressed the concerns raised by the petitioner and ensured a fair and just resolution to the matter at hand.