2019 (3) TMI 1570 - HC - GST

Extension of time period for filing of GST Tran-1 - transitional credit - transition to GST Regime - Held that - The Respondent No.2, is 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 - List this matter on 02.05.2019.

Summary

Issues:
1. Writ of mandamus sought to direct GST council to extend time for filing GST Tran-1.
2. Allegation of system error causing potential loss of entitled credit.
3. Direction for respondent to open portal or entertain manual filing if portal not opened.

Analysis:
1. The petitioner approached the High Court seeking a writ of mandamus to compel the GST council, respondent no.2, to recommend to the Commissioner an extension of the time period for filing GST Tran-1 due to an error in the application made on 26.08.2017. The petitioner requested to file the complete GST TRAN-1 for necessary transactional credit under amended Rule 117 (1A). This issue involves the interpretation of rules governing the filing of GST Tran-1 and the court's jurisdiction to issue a writ of mandamus in such matters.

2. The petitioner alleged in the petition that despite multiple attempts to rectify the error in TRAN-1, the electronic system of respondent no.2 failed to respond. Consequently, the petitioner faced the risk of losing the entitled credit over time. This issue raises concerns regarding the effectiveness of the electronic systems in place for GST filings and the potential consequences for taxpayers when such systems encounter errors or malfunctions.

3. The High Court, after hearing the counsels for both parties, directed respondent no.2 to open the portal before 31st March 2019. In case of non-compliance, the respondent was instructed to entertain the GST TRAN-1 manually and verify the credits claimed by the petitioner. Additionally, the respondent was mandated to ensure that the petitioner could pay taxes using the regular electronic system, maintaining the credit considerations for the petitioner. This directive highlights the court's power to issue specific instructions to ensure the protection of the petitioner's rights and entitlements in the face of system failures or delays.

This judgment showcases the court's proactive approach to resolving issues arising from technical glitches in electronic systems, emphasizing the importance of safeguarding taxpayers' rights and entitlements in the realm of GST filings. The High Court's intervention through a writ of mandamus serves as a mechanism to address systemic inadequacies and uphold the principles of fairness and justice in tax administration.