2019 (11) TMI 713 - 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. List this matter on 16.12.2019.

Summary

Issues:
1. Writ of mandamus to extend time period for filing GST Tran-1.
2. Allegation of non-response by electronic system causing potential loss of credit.
3. Grant of only CENVAT credit, not input tax credit on U.P. VAT.
4. Direction to reopen portal or entertain manual filing if portal not reopened.
5. Requirement for due verification of credits and allowing tax payments.

Analysis:
1. The petitioner sought a writ of mandamus directing the GST council to extend the time period for filing GST Tran-1 due to his application not being fully entertained on the last date. The petitioner expressed concern about potential loss of credit entitlement and requested permission to file the complete GST TRAN-1 for necessary transactional credit.

2. The petitioner alleged that despite multiple attempts, the electronic system of the respondent did not respond, leading to apprehensions of losing entitled credit over time. Specifically, the petitioner highlighted that only CENVAT credit had been granted, omitting the input tax credit on U.P. VAT, further complicating the issue of credit entitlement.

3. In response to the issues raised, the court directed the respondents to reopen the portal within two weeks or entertain the GST TRAN-1 manually if the portal remained inaccessible. The order emphasized the importance of due verification of credits claimed by the petitioner to ensure accurate processing and consideration of entitlements.

4. Furthermore, the court instructed that if the portal reopening was delayed, the petitioner should be allowed to pay taxes through the regular electronic system, ensuring continued compliance and utilization of credits that may be considered in the petitioner's favor. The comprehensive approach aimed to address the immediate concerns of credit loss and procedural challenges faced by the petitioner effectively.

5. The judgment concluded by requesting the learned counsel for the respondents to file a counter affidavit within a month, setting a timeline for further legal proceedings. The matter was listed for a specific date, indicating the court's commitment to overseeing the case's progress and ensuring timely resolution of the issues raised by the petitioner.