2019 (5) TMI 247 - HC - GST

Extension of time period for filing of Form GST Tran-1 - transition to GST Regime - transitional 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. List this matter on 01.07.2019.

Summary

Issues:
1. Petitioner seeking writ of mandamus to extend time for filing GST Tran-1.
2. Allegation of electronic system failure on last filing date causing potential loss of credit.
3. Respondents' notice of forming a new committee to address individual cases.
4. Respondents granted one month to file counter affidavit.
5. Direction for reopening portal within two weeks or manual application processing.

Analysis:
1. The petitioner approached the court seeking a writ of mandamus to direct the GST council to recommend extending the time for filing GST Tran-1 due to the petitioner's application not being entertained on the last date, leading to potential loss of entitled credit. The petitioner filed a complete application for necessary transactional credit but faced non-responsive electronic system issues on the deadline, prompting the legal intervention.

2. The petitioner alleged that despite multiple attempts on the filing date, the respondent's electronic system failed to respond, putting the petitioner at risk of losing the entitled credit over time. This failure was crucial as it directly impacted the petitioner's ability to claim the credit rightfully owed, emphasizing the significance of timely and effective electronic processing systems in tax matters.

3. The respondents were served notice of the writ petition and indicated the likelihood of forming a new committee to handle individual cases, albeit without providing a specific timeline for resolution. This development hinted at potential procedural changes to address similar issues faced by other taxpayers, showcasing the system's adaptability to rectify shortcomings and enhance efficiency.

4. The court granted the respondents one month to file a counter affidavit in response to the petitioner's claims, allowing both parties adequate time to present their arguments and evidence. This procedural step ensured a fair and comprehensive review of the case, enabling a balanced consideration of the petitioner's grievances and the respondent's justifications.

5. As an interim measure, the court directed the respondents to reopen the portal within two weeks or process the petitioner's application manually if the portal remained inaccessible. This proactive step aimed to expedite the resolution process, ensuring that the petitioner's tax obligations and credit claims were addressed promptly and efficiently, emphasizing the court's commitment to upholding taxpayer rights and facilitating compliance.