2019 (2) TMI 1456 - HC - GST

Extension of time for filing GST Tran-1 - input tax credit - migration to GST regime - extension sought on the ground that application was not entertained on the last date i.e. 27.12.2017 - 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. 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.

Issues:
1. Petitioner seeking writ of mandamus to extend time for filing GST Tran-1.
2. Allegation of electronic system failure by respondent no.2.
3. Respondents' notice of forming a new committee.
4. Request for time to file a counter affidavit.
5. Direction to reopen portal and entertain petitioner's application manually.

Analysis:
1. The petitioner approached the court seeking a writ of mandamus directing the GST council (respondent no.2) 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 claimed to have filed a complete application for necessary transactional credit.

2. The petitioner alleged that despite multiple attempts on the last filing date, the electronic system of respondent no.2 did not respond, potentially causing the petitioner to lose entitled credit over time. The court took note of this claim and considered the potential loss to the petitioner's credit.

3. The respondents informed the court that a new committee might be formed to address individual cases like the petitioner's within the next two weeks but were unable to provide an exact date. This information was presented in response to the notice served on them regarding the writ petition.

4. The learned counsel for the respondents requested and was granted one month's time to file a counter affidavit in response to the petitioner's claims. The court scheduled the next hearing for 26.03.2019 to allow the respondents time to prepare and submit their response.

5. The court directed the respondents to reopen the portal within two weeks from the date of the judgment. In case of failure to do so, they were instructed to manually entertain the petitioner's application and verify the claimed credits promptly. Additionally, the respondents were mandated to ensure that the petitioner could pay taxes using the regular electronic system maintained for credit consideration. This directive aimed to address the petitioner's concerns regarding potential loss of credit and ensure timely processing of their application.

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