2020 (3) TMI 562 - HC - GST

Filing of FORM GST TRAN 1 - transitional credit - Circular No.39/13/2018GST dated 03.04.2018 - HELD THAT - The writ application disposed off with the direction to the respondent no.5 herein i.e. the Nodal Officer to undertake this exercise at the earliest. The GSTN upon receipt of the proposal from the Nodal Officer shall look into the same and take an appropriate decision in accordance with law, more particularly, keeping in mind the writ-applicant should not suffer on account of any technical glitches.

Summary

Issues:
1. Petition for input tax credit under CGST and SGST Acts.
2. Technical glitches in filing Form GST TRAN1.
3. Failure to carry forward Cenvat Credit and VAT Credit.
4. Lack of response from tax authorities.
5. Extension of time limit for submitting declaration in Form GST TRAN1.

Analysis:

Issue 1: Petition for input tax credit under CGST and SGST Acts
The petitioner, a Proprietory concern, filed a writ-application under Article 226 of the Constitution of India seeking input tax credit under Section 140 of CGST Act, 2017 and SGST Act, 2017. The relief sought included issuance of writs in the nature of Certiorari or Mandamus, directing the authorities to grant input tax credit and address technical issues related to filing Form GST TRAN1.

Issue 2: Technical glitches in filing Form GST TRAN1
The petitioner encountered technical glitches while trying to file Form GST TRAN1 on 20th December, 2017, leading to the inability to save details related to CENVAT Credit and VAT Credit. Despite attempts to file within the stipulated time, the common portal failures prevented successful submission, resulting in the accumulated balance of credits not being carried forward.

Issue 3: Failure to carry forward Cenvat Credit and VAT Credit
Due to the technical glitches and errors in the GST system, the petitioner could not carry forward the accumulated balance of Cenvat Credit and VAT Credit from the period ending June, 2017, under the erstwhile laws to the Form GST TRAN1 filed in December 2017.

Issue 4: Lack of response from tax authorities
The petitioner raised the issue with the tax authorities, but there was no response from respondent no.3 initially. However, after intervention by the Deputy State Tax Commissioner, the case was positively recommended to the Nodal Officer, who was directed to address the technical issues and facilitate the petitioner in claiming the eligible credit.

Issue 5: Extension of time limit for submitting declaration in Form GST TRAN1
In consideration of the technical difficulties faced by registered persons in submitting the declaration in Form GST TRAN1, an order was issued by the Government of India on 7th February, 2020, extending the deadline till 31st March, 2020. The Court held that the petitioner was entitled to benefit from this extension and directed the Nodal Officer to take necessary actions by the specified date.

In conclusion, the Court disposed of the writ application with a direction to the Nodal Officer to address the petitioner's case promptly, ensuring that the technical glitches did not cause any detriment to the petitioner. The judgment highlighted the importance of timely action by the authorities in resolving issues related to input tax credit under the GST regime.