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2020 (7) TMI 136 - HC - GSTFiling of Form TRAN-I - availment of credit of excess VAT reflected in Returns - technical glitches on the GST Portal - vires of Rule 117(1A) of Haryana GST Rules, 2017 - HELD THAT - The Petitioner has challenged vires of Rule 117 (1A) of Rules, however we do not think it appropriate to declare it invalid as we are of the considered opinion that Petitioner is entitled to carry forward Cenvat Credit accrued under Central Excise Act, 1944. The Respondents have repeatedly extended date to file TRAN-I where there was technical glitch as per their understanding. Repeated extensions of last date to file TRAN-I in case of technical glitches as understood by Respondent vindicate claim of the Petitioner that denial of unutilized credit to those dealers who are unable to furnish evidence of attempt to upload TRAN-I would amount to violation of Article 14 as well Article 300A of the Constitution of India. The Respondents are directed to permit Petitioner to upload TRAN-I on or before 30.06.2020 and in case Respondent fails to do so, the Petitioner would be at liberty to avail ITC in question in GSTR-3B of July 2020 - Petition allowed.
Issues:
Challenge to vires of Rule 117(1A) of Haryana GST Rules, 2017 and seeking direction to upload form TRAN-I to avail credit of excess VAT due to technical glitches. Analysis: The petitioner, a partnership firm trading spare parts of automobiles, challenged the validity of Rule 117(1A) of Haryana GST Rules, 2017, seeking permission to electronically upload form TRAN-I to claim credit of excess VAT due to technical glitches on the GST Portal. The petitioner failed to upload TRAN-I by the deadline of 31.12.2017, but the Respondents extended the filing date to 31.03.2020. The issue was contended to be covered by a judgment of the High Court and the Delhi High Court, allowing similar petitions to file TRAN-I by 30.06.2020. The Respondents did not contest the issue being covered by previous judgments. The Court noted that various similar petitions had been disposed of by allowing the uploading of TRAN-I or claiming ITC in GSTR-3B due to technical difficulties faced by taxpayers. The Division Bench of the High Court had previously allowed petitions similar to the present one, directing the opening of the portal for uploading TRAN-I or permitting the claim of ITC in GSTR-3B. The Delhi High Court also allowed the revision of TRAN-I until 30.06.2020, emphasizing that technical difficulties faced by taxpayers should not deprive them of their rights. The High Court highlighted the unfairness of restricting benefits only to technical difficulties on the common portal and emphasized that the government cannot adopt different standards for taxpayers and itself. The Court noted that the CENVAT credit accrued is the property of the assessee and a constitutional right under Article 300A, emphasizing that it cannot be taken away arbitrarily. The Court declined to declare Rule 117(1A) invalid but held that the Petitioner is entitled to carry forward Cenvat Credit accrued under the Central Excise Act, 1944. The repeated extensions of the filing date for TRAN-I due to technical glitches vindicated the Petitioner's claim that denial of unutilized credit would violate Article 14 and Article 300A of the Constitution. The Court allowed the petition, directing the Respondents to permit the uploading of TRAN-I by 30.06.2020 or allowing the Petitioner to claim ITC in GSTR-3B of July 2020, with the liberty for the Respondents to verify the genuineness of the claim.
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