2020 (3) TMI 727 - HC - GST

Input tax credit - GST TRAN-I - purchases of goods and utilized the same towards payment of VAT payable on sale of goods upto 30.06.2017 - migration to GST regime - HELD THAT - Any credit which is admittedly due to the petitioners cannot be denied to them on account of procedural wrangles as well as on account of system failure glitches in the system without their being any fault on the part of the petitioners. In view of the factual position which is not disputed by learned Advocate General the present writ petition is disposed of by directing the respondents to allow the petitioner to file Form GST TRAN-I either electronically or manually on or before 31.03.2020.

Summary

Issues Involved:
1. Claim of input tax credit under GST regime for excise duty and NCCD paid pre-GST implementation.

Analysis:
The judgment by the High Court of Himachal Pradesh involved the issue of allowing petitioners to claim input tax credit under the Goods and Services Tax (GST) regime for excise duty and National Calamity Contingent Duty (NCCD) paid before the implementation of GST. The petitioners, who were registered as Dealers of Goods under the Himachal Pradesh Value Added Tax Act, 2005 and the Central Sales Tax Act, 1956, faced challenges in availing Input Tax Credit (ITC) for the taxes paid on goods purchased prior to migrating to GST. They attempted to upload their claim of input tax credit on the common portal through Transitional ITC/Stock Statement in Form TRAN-I but faced technical difficulties. The petitioners argued that due to system glitches and failures, they were unable to file Form GST TRAN-I, resulting in the denial of their right to transitional ITC. The counsel for the petitioners cited a decision by a Coordinate Bench of the Court and various judgments from other High Courts where similarly situated persons were allowed to file Form GST TRAN-I electronically or manually by a specified date.

The Court acknowledged that any credit due to the petitioners should not be denied due to procedural issues or system failures beyond their control. Relying on the cited judgments and the undisputed factual position, the Court directed the respondents to permit the petitioners to file Form GST TRAN-I either electronically or manually by a specified deadline of 31.03.2020. The judgment clarified that it did not express any opinion on the merit of the petitioners' claim regarding their entitlement to input tax credit for excise duty and NCCD paid by them. The Court's decision aimed to address the petitioners' challenges in claiming transitional ITC under the GST regime and ensure that they were not unfairly deprived of their rightful credits.