2020 (3) TMI 1038 - HC - GST

Filing of form GST TRAN-1 - transitional credit - It is the case of the petitioner that the Redressal Grievance Committee did not consider the problem faced by the petitioner to upload the revised Form GST TRAN-1 - HELD THAT - It is not in dispute that the petitioner is entitled to carry forward CENVAT/Input Tax Credit to the tune of ₹ 14,55,770/- as per Form E.R.-1 under the provisions of the Act, 1944 as well as the Act, 2017. It is also not in dispute that the petitioner uploaded Form GST TRAN-1 erroneously showing ZERO balance for CENVAT Credit admissible as Input Tax Credit - Therefore, as per the provisions of Section 140 of the Act, 2017 read with rule 117 of Rules, 2017, the petitioner is entitled to carry forward the CENVAT Credit. In the opinion of this Court, the respondents have failed to consider the aspect of the technical glitch to reject the claim of the petitioner on the ground that there was no technical error when the petitioner uploaded the Form GST TRAN-1 without considering the fact that the petitioner could not upload revised Form GST TRAN-1 within the prescribed date of 27.12.2017. The petitioner is also entitled to get one more chance to submit the declaration in Form GST TRAN-1 as the petitioner could not submit the revised Form GST TRAN-1 as the petitioner could not upload the same before the due date of 27.12.2017 on account of technical difficulties on the common portal - the respondents are hereby directed to consider the claim of the petitioner for carry forward of Input Tax Credit of ₹ 14,55,770/- so as to enable the petitioner to take advantage of the order dated 07.02.2020 to upload the revised Form GST TRAN-1 on or before 31.03.2020. Petition disposed off.

Issues:
1. Petitioner's entitlement to file revised Form GST TRAN-1 due to technical glitches.
2. Consideration of technical errors in rejecting petitioner's claim by IT Grievance Redressal Committee.
3. Interpretation of provisions of Section 140 of the Act, 2017 and Rule 117 of the Rules, 2017.
4. Extension of time limit for submitting Form GST TRAN-1 as per Order No.01/2020-GST dated 07.02.2020.

Analysis:

Issue 1: Petitioner's entitlement to file revised Form GST TRAN-1 due to technical glitches

The petitioner, a Private Ltd. Company engaged in manufacturing and trading, sought relief through a writ petition under Article 226 of the Constitution of India. The petitioner's claim revolved around the inability to file a revised Form GST TRAN-1 electronically due to glitches in the system of the respondents. Despite providing correct details in the original form, an inadvertent error led to the petitioner being unable to upload the revised form before the due date. The petitioner made representations highlighting the technical glitch faced, emphasizing the need to claim credit amounting to ?14,55,770. The court acknowledged the petitioner's entitlement to carry forward the credit and directed the respondents to consider the claim in light of the technical difficulties faced.

Issue 2: Consideration of technical errors in rejecting petitioner's claim by IT Grievance Redressal Committee

The IT Grievance Redressal Committee rejected the petitioner's representation, citing successful filing of the original form without acknowledging the technical challenges faced by the petitioner in uploading the revised form. The court noted that the committee failed to consider the crucial aspect of the technical glitch, leading to an incorrect rejection of the petitioner's claim. The court emphasized the need to evaluate the circumstances under which the petitioner was unable to rectify the error due to system issues.

Issue 3: Interpretation of provisions of Section 140 of the Act, 2017 and Rule 117 of the Rules, 2017

In analyzing the legal framework, the court affirmed the petitioner's right to carry forward the CENVAT/Input Tax Credit amounting to ?14,55,770 under Section 140 of the Act, 2017 read with Rule 117 of the Rules, 2017. The court highlighted the discrepancy in the original form filed by the petitioner and recognized the legitimate claim for credit based on the provisions of the law. The court's interpretation favored the petitioner's position regarding the entitlement to claim the credit amount.

Issue 4: Extension of time limit for submitting Form GST TRAN-1 as per Order No.01/2020-GST dated 07.02.2020

The court referred to Order No.01/2020-GST dated 07.02.2020, which extended the deadline for submitting declarations in Form GST TRAN-1 until 31st March 2020. This extension was applicable to registered persons facing technical difficulties on the common portal, aligning with the petitioner's situation. Considering this order, the court granted the petitioner an opportunity to rectify the error by allowing the submission of the revised form by the specified date. The court directed the respondents to facilitate this process and verify the petitioner's claim promptly.

In conclusion, the court's judgment favored the petitioner's case, emphasizing the importance of considering technical glitches in evaluating claims and ensuring compliance with legal provisions regarding tax credit entitlements.

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