2020 (8) TMI 824 - HC - GST

Short transition of input tax credit - transition to GST regime - HELD THAT - The issue has been decided by various High Courts as well as by the Apex Court, this court deems it proper to direct the petitioner to file a fresh representation annexing all the judgments cited before this court within a period of seven days before the Jurisdictional Commissioner from the date of receipt of certified copy of the order - Reliance can be placed in the case of Adfert Technologies Pvt. Ltd. Vs. Union of India 2019 (11) TMI 282 - PUNJAB AND HARYANA HIGH COURT . Petition disposed off.

Summary

Issues:
1. Invocation of Article 226 seeking a writ of mandamus for transitioning of input tax credit (ITC).
2. Technical difficulties faced in uploading form GST TRAN-1.
3. Failure of respondent authorities to address grievances.
4. Legal precedents from Punjab and Haryana High Court and Delhi High Court.

Issue 1:
The petitioner invoked Article 226 of the Constitution seeking a writ of mandamus to direct the respondents to allow transitioning of input tax credit (ITC) by updating the electronic credit ledger or revising form GST TRAN-1. The petitioner, a sole proprietorship firm in the lubricants business, registered under the GST Portal, faced challenges in transitioning from the old tax regime to the new GST regime. The petitioner highlighted the importance of utilizing input tax credit accumulated under the earlier tax laws in the new taxation regime. The court acknowledged the significance of transitional arrangements under GST laws to facilitate the migration of CENVAT credit to the electronic credit ledger.

Issue 2:
The petitioner encountered technical difficulties in uploading form GST TRAN-1, leading to persistent grievances raised before the respondent authorities. Despite submitting representations marked as Annexure P/3, the petitioner's concerns were not addressed, and no action was taken by the authorities. The petitioner's counsel referenced legal precedents from Punjab and Haryana High Court and Delhi High Court to support their contention that the petitioner's case was covered by previous judgments allowing the filing of TRAN-I before or after the appointed day.

Issue 3:
Considering the decisions of various High Courts and the Apex Court on similar matters, the court directed the petitioner to file a fresh representation within seven days before the Jurisdictional Commissioner, annexing all relevant judgments cited. The Jurisdictional Commissioner was instructed to decide on the representation in light of the previous court rulings and issue a reasoned order within four weeks. The court emphasized prompt communication of the decision to the petitioner, thereby disposing of the petition.

Issue 4:
The court considered the legal precedents from Punjab and Haryana High Court and Delhi High Court, along with the dismissal of Special Leave Petitions (SLPs) against those decisions. By acknowledging the decisions of various High Courts and the Apex Court, the court guided the petitioner to follow the established legal framework and precedents in addressing the transitioning issues related to input tax credit under the GST regime.