2020 (11) TMI 423 - HC - GST

Permission to utilise transitional credit - rectification of GSTR-3B from July 2017 to till date - HELD THAT - Keeping in view the fact that petitioner s letter dated 18th June, 2020 has not been disposed of till date, the present writ petition is disposed of with a direction to Commissioner, GST Delhi (South), to decide the petitioner s letter dated 18th June, 2020 within eight weeks in accordance with law. All rights and contentions of the parties are left open. Issue Notice.

Summary

Issues:
1. Petition seeking direction to dispose of letter for transitional credit and rectification of GSTR-3B.
2. Non-availability of transition credit leading to cash payment of tax liability.
3. Request for reopening portal to file rectified GSTR-3B for utilizing transitional credit.
4. Entitlement to refund of output liability paid in cash due to transition credit.
5. Jurisdiction issue regarding respondent No.7.
6. Disposal of the writ petition with a direction for decision on the petitioner's letter.

Analysis:
1. The petitioner filed a writ petition requesting respondent No.7 to process a letter dated 18th June, 2020, seeking permission to utilize transitional credit from July 2017 onwards and rectify GSTR-3B. The petitioner aimed to refund ?3,00,46,015 paid in cash on output tax liability due to non-availability of transition credit initially.

2. The counsel argued that the unavailability of the transitional credit immediately after the introduction of the GST law forced the petitioner to pay the tax liability in cash, which was unnecessary. The transitional credit remained unused, and the petitioner sought the reopening of the portal to rectify GSTR-3B from July 2017 onwards to utilize the credit carried forward through GST TRAN-1.

3. Emphasizing that rectifying the return would enable the petitioner to claim a refund for the cash paid towards output liability from July 2017 to November 2017, the counsel highlighted that the payment was unnecessary due to the existence of transition credit in the electronic credit ledger from July 2017.

4. The counsel referenced a judgment by a Coordinate Bench of the Court in a similar case, asserting that the issue at hand was covered by that judgment. Consequently, the Court issued a notice to the respondents, and all learned counsels representing the respondents accepted the notice.

5. Respondent No.7's jurisdiction was questioned by one of the counsels, suggesting a change from Assistant Commissioner, Nehru Place, to Commissioner, GST Delhi (South). The Court, noting the pending disposal of the petitioner's letter, directed the Commissioner, GST Delhi (South), to decide on the matter within eight weeks, maintaining all rights and contentions of the parties.

6. The Court disposed of the writ petition, ordering the decision on the petitioner's letter and ensuring the order's immediate upload on the website, with a copy forwarded to the counsels via email. The judgment aimed to resolve the issues concerning transitional credit utilization and rectification of GSTR-3B, providing relief to the petitioner regarding the unnecessary cash payment of tax liabilities.