2021 (6) TMI 12 - HC - GST

Filing of form GST TRAN-1 - HELD THAT - Despite providing copies of proof of having filed the TRAN-1 Form, the Respondents have not taken any action. Emails written by the Petitioner to the help desk of the Respondents and to the Nodal Officer have also not yielded any favourable outcome. There is no counter affidavit filed by the Respondents and therefore we are unable to understand the reason for denial of the credit to the Petitioner. The present petition are allowed and Respondents are directed to immediately process the TRAN-1 Form filed by the Petitioner in accordance with law and reflect the credit in the electronic credit ledger under the GST regime - petition allowed.

Summary

Issues:
1. Failure to reflect transitional input tax credit balance in electronic credit ledger despite filing TRAN-1 Form within the prescribed time period.
2. Allegations of lack of response and resolution from GST Authorities despite providing proof of filing and raising the issue.
3. Application of relevant case laws to support the petitioner's claim.
4. Directing the Respondents to process the TRAN-1 Form and reflect the credit in the electronic credit ledger under the GST regime.

Analysis:
1. The petitioner, a trading company, filed the TRAN-1 Form within the deadline but faced issues with the transition of CENVAT credit into the GST regime. Despite providing evidence of filing and contacting GST Authorities, the transitional input tax credit balance was not reflected in the electronic credit ledger.
2. The court noted the petitioner's efforts to resolve the matter, including communication with help desks and nodal officers, without a favorable outcome. The lack of counter affidavit from the Respondents hindered understanding the denial of credit to the petitioner.
3. Citing the judgment of the Madras High Court, the court highlighted the government's intention to allow credit transition smoothly from the earlier tax regime to the GST regime. The court referred to previous judgments supporting the petitioner's case, emphasizing the need to address such issues promptly.
4. Consequently, the court allowed the petition, directing the Respondents to process the TRAN-1 Form and reflect the credit in the electronic credit ledger under the GST regime. The Respondents were instructed to facilitate the filing of the form if required, either through the GST portal or manually, by a specified deadline.

This detailed analysis of the judgment outlines the issues raised, the petitioner's contentions, the court's observations, and the final directive provided by the court to address the matter effectively.