2019 (12) TMI 999 - HC - GST

Reopening of portal for filing of Form TRAN-1/TRAN-2 - Input tax credit - HELD THAT - The factual position in the present case is not any different. At this juncture it may be noted that as per Notification No.49/2019 dated 09.10.2019 issued by CBIC the date prescribed for filing of Form GST TRAN-1 under Rule 117 (1A) of the CGST Rules has been extended to 31.12.2019. This itself demonstrates that the Respondents recognise the fact that the registered persons were not able to upload the Form GST TRAN-1 due to the glitches in the system. It is not fair to expect that each person who may not have been able to upload the Form GST TRAN-1 should have preserved some evidence of it such as by taking a screen shot. Many of the registered dealers/traders come from rural/semiliterate background. They may not have had the presence of mind to create any record of their having tried and failed to upload the Form GST TRAN-1. They cannot be made to suffer in this background particularly when the systems of the Repsondents were not efficient - From the documents placed on record it emanates that the Respondents have no cogent ground to deny the benefit of the Notification No. 49/2019 dated 09.10.2019 issued specifically to grant relief to taxpayers who faced difficulty in filing Form GST TRAN-1 due to technical glitches. The respondents are directed to either open the online portal so as to enable the petitioner to file the Form TRAN-1 electronically or to accept the same manually on or before 31.12.2019 - petition allowed.

Summary

Issues:
Claim of tax credit in Form TRAN-1/TRAN-2 due to technical problems in the system.

Analysis:
The petitioner, engaged in bitumen trading under the CGST Act, sought to claim Input Tax Credit of ?70,22,473 on stock as of 30.06.2017. However, due to technical glitches and delays in the availability of required forms on the GST portal, the petitioner was unable to file the necessary declarations within the stipulated period. Despite multiple attempts, the petitioner faced challenges in uploading the claim, leading to a request for manual submission or portal reopening.

Analysis:
The petitioner approached the GST officer and submitted representations to resolve the issue, but to no avail. Despite extensions granted by the government for filing declarations, the petitioner's grievance remained unresolved. Citing precedents where relief was granted to similarly affected parties, the petitioner sought a writ of mandamus to open the online portal for filing Form TRAN-1 and TRAN-2.

Analysis:
The court, referencing past judgments, acknowledged the systemic challenges faced by taxpayers in transitioning to the GST regime. Emphasizing the importance of safeguarding the right to property under Article 300 (A) of the Constitution, the court directed the respondents to facilitate the filing of Form TRAN-1 electronically or manually by 31.12.2019. The decision highlighted the need for authorities to process claims diligently, considering the difficulties faced by taxpayers due to technical glitches.

Analysis:
The judgment underscored the obligation of the respondents to address genuine difficulties faced by taxpayers in transitioning to the GST regime. By extending the deadline for filing Form GST TRAN-1 and recognizing the challenges encountered by taxpayers, the court emphasized the need for a fair and efficient resolution mechanism. The ruling reiterated the principle of protecting the right to property of the assessee in the form of credit standing, ensuring that individuals are not unjustly deprived of their entitlements.