2019 (8) TMI 85 - HC - GST

Unable to file TRAN-1 form - transitional credit - transition to GST regime - HELD THAT - The Court would urge the ITGRC to review the policy it has adopted in such cases, and acknowledge instances like the present one, where the Petitioners are not able to link with the Portal and therefore, the fact of a technical glitch is not able to be accounted for in the system. The Court therefore, directs that the Respondents to either open the Portal to enable the Petitioner to again file the TRAN- 1 Form electronically, failing which they will accept the manually typed TRAN 1 Form on or before 31st August, 2019. The Petitioner s claim shall thereafter be processed in accordance with law.

Summary

Issues:
1. Claiming CENVAT Credit due to technical glitches in GST Portal.

Analysis:
The judgment addresses a case where a registered dealer was unable to claim CENVAT Credit amounting to ?36,28,099 due to technical glitches in the GST Portal. The Respondents had formed an IT Grievance Redressal Committee to address such grievances caused by technical issues on the portal. The Petitioner's case fell under the category where filing was attempted but no valid error was reported. The Petitioner's eligibility to claim the credit was not disputed, as it was a service tax refund carried forward under the new GST regime. Despite repeated attempts, the Petitioner could not file the necessary form due to system errors. The Court acknowledged the technical errors in the GST system and emphasized that expecting compliance from Assessees in such situations would be burdensome. It directed the Respondents to allow the Petitioner to refile the form electronically or manually, ensuring the claim is processed accordingly.

2. Review of ITGRC policy in cases of inability to connect with the GST Portal.

Analysis:
The judgment highlights the need for the ITGRC to review its policy in cases where Petitioners are unable to connect with the GST Portal, leading to unaccounted technical glitches. The Court urged the ITGRC to consider instances like the present case, where technical issues prevent proper filing and registration of attempts due to network or system failures. By directing the Respondents to facilitate re-filing of the form, the Court emphasized the importance of accommodating genuine cases of technical hindrances faced by taxpayers. The judgment underscores the significance of ensuring a fair and efficient process for taxpayers encountering technical challenges in the GST system, advocating for a more responsive approach to such issues.