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2019 (11) TMI 1245 - HC - GSTUnable to upload Form TRANS-I - transitional input tax credit - transition to GST regime - time limitation as provided under Section 117 of the CGST Rules 2017 for availing such credit - HELD THAT - It is not in dispute that there were glitches in the system which led to filing of petitions before various High Courts of the Country and these Courts have granted the relief to the taxpayers by directing the authorities to open the portal and/or receive the manually filed Forms and/or approach the Nodal Officers appointed by the Government in this regard. In various judgements, it has been held that GST is a new progressive levy. One of the progressive ideal of GST is to avoid cascading taxes. GST Laws contemplate seamless flow of tax credits on all eligible inputs. The input tax credits in TRAN-1 are the credits legitimately accrued in the GST transition. The due date contemplated under the laws to claim the transitional credit is procedural in nature. Therefore, in view of the GST regime and the IT platform being new, it may not be justifiable to expect the users to back up digital evidences - reliance can be placed in various cases of Madras and Delhi High Courts of M/S. AADINATH INDUSTRIES ANR. VERSUS UNION OF INDIA ORS. 2019 (10) TMI 91 - DELHI HIGH COURT , M/S. ARORA CO. VERSUS UNION OF INDIA ORS. 2019 (11) TMI 471 - DELHI HIGH COURT and TARA EXPORTS VERSUS THE UNION OF INDIA, GOODS AND SERVICE TAX COUNCIL, THE PRINCIPAL COMMISSIONER OF CGST AND CENTRAL EXCISE, THE PRINCIPAL SECRETARY/COMMISSIONER OF COMMERCIAL TAXES, THE ASSISTANT COMMISSIONER (ST) , THE CENTRAL GST OFFICER AND THE ASSISTANT COMMISSIONER, CGST AND CENTRAL EXCISE 2018 (9) TMI 1474 - MADRAS HIGH COURT . We have no reason to doubt the claim of the petitioner that it had made genuine efforts for filing the returns online, but such attempts failed because of technical glitch. We, however, make it clear that does this Court is not dealing with an issue whether the petitioner is entitled to input credit as claimed by it because that is a matter to be examined by the authorities. The respondents are directed to permit the petitioner to file TRAN-1 either electronically or manually statutory form(s) TRAN-1 on or before 31.12.2019 - petition allowed.
Issues:
1. Petitioner seeks relief to file Tran-1 form for input tax credit under GST. 2. Glitches in the GST system preventing the petitioner from filing Tran-1 form. 3. Dispute over the limitation period for filing Tran-1 form. 4. Judicial interpretation of procedural difficulties in claiming input tax credit under GST. Analysis: Issue 1: The petitioner sought relief through a writ petition to file the Tran-1 form under Article 226 of the Constitution of India to avail and utilize input credit for duties/taxes paid on inputs held in stock. The petitioner, engaged in manufacturing and sales, claimed entitlement to input tax credit on inputs, capital goods, and input services, as per the GST Act. Issue 2: The petitioner faced challenges due to glitches in the GST system, which hindered the filing of the Tran-1 form despite genuine efforts. The system's unavailability for filing returns/forms caused practical problems for taxpayers, including the petitioner, leading to the inability to utilize input tax credit. Issue 3: The respondents contended that the petitioner missed the deadline for filing the Tran-1 form as per Section 117 of the CGST Rules 2017, thereby arguing against permitting the petitioner to file the form after the limitation period. The petitioner's claim of technical difficulties in filing the form was denied by the respondents. Issue 4: Judicial interpretation highlighted the procedural challenges faced by taxpayers in claiming input tax credit under the new GST system. Various High Courts, including the Madras, Delhi, Punjab, and Haryana High Courts, acknowledged the system's trial and error phase, allowing taxpayers to file Tran-1 forms even after the due date, considering the technical glitches and procedural complexities. In a detailed analysis, the High Court of Himachal Pradesh granted relief to the petitioner, directing the respondents to permit the filing of Tran-1 forms electronically or manually by a specified date. The court emphasized the importance of addressing technical glitches and procedural difficulties faced by taxpayers in claiming input tax credit under the GST regime, aligning with the judicial precedent set by other High Courts across the country.
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