2020 (8) TMI 331 - HC - GST

Reopening of portal for filing of FORM GST TRAN 1 within the time stipulated - transitional credit - transition to GST regime - applicability of Circular No.39/13/2018-GST dated 03.04.2018 - HELD THAT - The issue has to be considered first by the learned Single Judge. Considering the stalemate now occasioned by reason of the earlier Writ Petitions numbered as W.P.(C). 9081/2018 and W.P.(C). 9067/2018, the learned Counsel seeks for withdrawing these writ petitions, without prejudice to their contentions. We are of the opinion that Writ Petition Nos. 9081/2018 and 9067/2018 can be permitted to be withdrawn - The Writ Appeals are disposed off recording the prayer for withdrawal and our permission so to do, with the reservation that it would be without prejudice to their contentions in the later writ petition, as raised to allow the input tax claim on the stock where tax has been paid under the VAT Act. The assessees cannot claim under the Circular and their case has to be considered on the other contentions raised independently. The order impugned in those orders need not detain the learned Single Judge in considering the merits of the contentions raised. But the department would be entitled to resist the claim of the petitioners on the very same reasoning that their defeault cannot be rectified - the Writ Appeals are disposed off with the above observation and direct the Registry to post the Writ Petitions before the learned Single Judge.

Summary

Issues:
1. Appellants seeking mandamus to reopen portal for uploading FORM GST TRAN 1.
2. Interpretation of Circular No.39/13/2018-GST.
3. Claiming input tax credit for Excise Duty and Value Added Tax.
4. Assessees' mistake in filing Writ Petitions.
5. Estoppel due to earlier Writ Petitions.
6. Withdrawal of earlier Writ Petitions.
7. Consideration of input tax claim independently.

Analysis:
1. The controversy arose post-GST implementation when dealers needed to upload FORM GST TRAN 1 for availing input tax credit on stock. Two dealers filed Writ Petitions seeking to reopen the portal for uploading as the last date was preponed, and they had uploaded details but not the Form itself.

2. Circular No.39/13/2018-GST addressed technical glitches in uploading FORM GST TRAN 1. The State Authorities rejected claims under this Circular, stating that dealers who uploaded the Form and claimed input for excise duties paid directly to manufacturers were not covered.

3. The assessees admitted uploading FORM GST TRAN 1 but omitted Value Added Tax details for local purchases. They mistakenly believed separate Forms were required for Excise Duty and Value Added Tax. Now they seek to rectify this error to claim input tax credit for Value Added Tax.

4. The assessees' earlier Writ Petitions were based on a mistaken premise, leading to a bonafide error. They now realize the omission of Value Added Tax details and seek to rectify it for a valid input tax claim.

5. The assessees are estopped from raising contentions under the Circular due to the inadvertent omission of Value Added Tax details. The issue is compared to a previous judgment in Goods and Services Tax Network V. Leo Distributors.

6. The Court permits the withdrawal of earlier Writ Petitions filed on a wrong premise without prejudice to the assessees' contentions. This allows for a fresh consideration of the input tax claim independently.

7. The assessees cannot claim under the Circular, and their case must be considered based on other contentions independently. The department can resist the claim on the grounds of the assessees' default. The decision on the applicability of the cited judgment is left to the learned Single Judge for further consideration.

In conclusion, the Writ Appeals are disposed of with directions to post the Writ Petitions before the learned Single Judge for a detailed examination of the input tax credit claim based on the correct details provided by the assessees.