2019 (9) TMI 691 - HC - GST

Extension of time period for amending GST Tran-1 - transitional credit - despite making several efforts, the electronic system of the respondent no.2 did not respond, as a result of which the petitioner is likely to suffer loss of the credit that it is entitled to by passage of time - 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. List this matter on 17.10.2019.

Summary

Issues:

1. Petitioner seeking writ of mandamus to extend time period for amending GST Tran-1.
2. Allegation of electronic system non-responsiveness leading to potential loss of entitled credit.
3. Direction to respondents to reopen portal or entertain GST TRAN-1 manually.
4. Requirement for respondents to verify credits and allow regular tax payments.

Analysis:

1. The petitioner approached the court seeking a writ of mandamus to direct the GST council to recommend to the State Government an extension of the time period for amending the GST Tran-1. The petitioner's application was not fully processed due to the non-responsiveness of the electronic system on the last date. The petitioner requested to file the complete GST TRAN-1 for necessary transactional credit. The court acknowledged the petitioner's plea and directed the respondents to take action.

2. The petitioner alleged that despite multiple attempts, the electronic system of the respondent did not respond, potentially causing a loss of entitled credit over time. The petitioner specifically mentioned that the benefit of the entire CENVAT credit had not been granted. This allegation raised concerns about the efficiency and reliability of the electronic system, prompting the court to intervene and provide a solution to address the petitioner's grievances.

3. In response to the petitioner's claims, the court directed the respondents to either reopen the portal within two weeks or entertain the GST TRAN-1 manually. This directive aimed to ensure that the petitioner's application is processed, and the credits claimed are verified accurately. By setting a timeline for compliance, the court emphasized the importance of timely resolution and the protection of the petitioner's rights in accessing the entitled credit.

4. Additionally, the court instructed that the respondents should allow the petitioner to pay taxes using the regular electronic system, which is crucial for utilizing the credit that may be considered for the petitioner. This requirement ensures that the petitioner can continue its business operations smoothly and maintain compliance with tax regulations while awaiting the resolution of the credit-related issues. Furthermore, the court allowed the respondents to file a counter affidavit within a specified timeframe, indicating a fair opportunity for both parties to present their arguments before the court on the next hearing date.