2019 (6) TMI 936 - HC - GST

Filing of TRANS1 - Input tax credit of the duties for the period prior to 01.07.2017 though reflected in the declaration filed by the petitioner no.1 in Tran1 form is not shown in the electronic credit ledger account - HELD THAT - We direct the Gujarat Commissionerate to verify the credit availed by the petitioner and issue a certificate in this regard. Let this exercise be undertaken and completed within four weeks of the receipt of this order. Post the matter on 24th July 2019.

Summary

Issues:
- Benefit of ?5.21 crores not reflected in electronic credit ledger
- Extension of time for filing GSTR-38
- Refraining from demanding payment of taxes
- Imposition or waiver of late fee, interest, and penalty
- Availment of input tax credit for financial year 2017-18
- Compliance with High Court of Delhi order

Issue 1: Benefit of ?5.21 crores not reflected in electronic credit ledger
The writ applicants sought a mandamus to direct the respondents to grant the benefit of ?5.21 crores to the petitioner, which was not reflected in the electronic credit ledger for the State of Gujarat. The High Court noted that the petitioners were unable to avail such credit due to the non-transfer of credits from petitioner no.2 to petitioner no.1 after a business transfer. The Court directed the Gujarat Commissionerate to verify the credit availed by the petitioner and issue a certificate within four weeks.

Issue 2: Extension of time for filing GSTR-38
The petitioners requested a mandamus to extend the time for filing GSTR-38 after the benefit of ?5.21 crores was granted. The High Court's order emphasized the need for expedited steps to ensure the issuance of a certificate by the Bombay Commissionerate to enable further actions by the Commissionerates of Delhi, Karnataka, and Gujarat. The Court directed other Commissionerates, especially Delhi Commissionerate, to verify and complete the process within four weeks of receiving the orders.

Issue 3: Refraining from demanding payment of taxes
Another relief sought was a mandamus to direct the respondents to refrain from demanding payment of taxes under the Act until the resolution of the issues raised by the petitioners. Although not explicitly addressed in the judgment, this issue is related to the overall request for relief and the need for compliance with the High Court of Delhi's order.

Issue 4: Imposition or waiver of late fee, interest, and penalty
The petitioners also sought a prohibition on imposing or waiving any late fee, interest, and penalty for delayed filing of GSTR 3B and GSTR-1 until the transition credit was made available. The Court did not provide specific directions on this issue in the judgment but focused on the verification and issuance of certificates related to input credit availed.

Issue 5: Availment of input tax credit for financial year 2017-18
The petitioners requested a mandamus to allow them to avail input tax credit for invoices or debit notes relating to the financial year 2017-18 by extending the due date of filing the return under Section 39. The High Court's order primarily focused on the verification process and compliance with the High Court of Delhi's order to ensure the proper distribution of input credit among branches/locations.

Issue 6: Compliance with High Court of Delhi order
The High Court of Gujarat referenced the order passed by the High Court of Delhi in a similar matter, emphasizing the entitlement of petitioners to distribute input credit and the need for expedited verification and compliance. The Gujarat Commissionerate was directed to verify the credit availed by the petitioner and issue a certificate within four weeks, aligning with the directives of the Delhi High Court's order.

In conclusion, the High Court of Gujarat addressed multiple grievances related to the implementation of GST, emphasizing the verification and issuance of certificates for input credit availed by the petitioners. The judgment highlighted the need for compliance with the High Court of Delhi's order and directed the Gujarat Commissionerate to undertake the verification process promptly. The Court's focus was on ensuring the proper distribution and availing of input tax credit, aligning with the broader objectives of GST compliance and relief sought by the petitioners.