2019 (8) TMI 280 - HC - GST

Extension of time period for filing of GST Tran- 1 - transitional credit - transition to GST regime - 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 GST TRAN-1 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.

Summary

Issues:
- Petition seeking writ of mandamus to direct GST council to extend time for filing GST Tran-1
- Allegation of electronic system failure leading to potential loss of entitled credit
- Direction to respondents to reopen portal or entertain manual filing of GST TRAN-1
- Provision for due verification of credits and allowing payment of taxes

Analysis:
The judgment pertains to a petition seeking a writ of mandamus to compel the GST council to recommend to the State Government an extension of the time period for filing GST Tran-1 for the petitioner. The petitioner claimed that on the last filing date, the electronic system of the respondent did not respond despite multiple attempts, potentially causing a loss of entitled credit. In response, the court directed the respondents to either reopen the portal within two weeks or accept the manual filing of GST TRAN-1 by the petitioner. The court further instructed the respondents to verify the claimed credits diligently and ensure that the petitioner can pay taxes using the regular electronic system for the credits under consideration.

The judgment highlights the importance of ensuring that technical failures do not impede the rights of taxpayers to claim entitled credits under the GST regime. By directing the respondents to take necessary actions to address the petitioner's situation promptly, the court upholds the principles of fairness and procedural justice in tax administration. The provision for due verification of credits and the allowance for tax payment using the regular electronic system demonstrate the court's commitment to safeguarding the interests of taxpayers while maintaining the integrity of the tax system.

Furthermore, the court granted the respondents a month to file a counter affidavit in response to the petition, indicating a fair opportunity for the respondents to present their case and address any concerns raised by the petitioner. The listing of the matter for a future date ensures continued judicial oversight and monitoring of the implementation of the court's directions, underscoring the court's commitment to ensuring compliance with its orders and protecting the rights of the petitioner in the ongoing legal proceedings.