2021 (10) TMI 1121 - HC - GST

Permission to carry forward unutilised CENVAT credit of duty paid under Central Excise Act, 1944 as well as the Input Tax Credit under VAT Act of the respective States - HELD THAT - The issue decided in the case of UNION OF INDIA MINISTRY OF FINANCE, DEPARTMENT OF REVENUE, THROUGH ITS SECRETARY (REVENUE) VERSUS M/S ASAID PAINTS LIMITED 2021 (3) TMI 953 - KARNATAKA HIGH COURT where it was held that the respondents-assessees are permitted to file/revise TRAN-1 either electronically or manually on or before 31.03.2021. Appeal dismissed.

Summary

Issues:
Appeal arising from a common order dated 10.03.2021 - Interpretation of Rule 117 of the Rules - Extension of time for submitting declaration electronically in Form GST TRAN-1 - Granting relief to assessees to file/revise TRAN-1 - Verification of genuineness of claims - Belated filing of TRAN-1 - Benefit of CENVAT credit under the erstwhile tax regime.

Analysis:
The appeal involved a common order arising from multiple cases adjudicated by a Division Bench of the Karnataka High Court. The Division Bench referred to previous judgments, including those of the Punjab and Haryana High Court, regarding the carry forward of unutilized CENVAT credit and Input Tax Credit. The court examined the historical perspective of Rule 117 and subsequent amendments extending the time for submitting declarations electronically in Form GST TRAN-1. The court noted the amendments made to Rule 117, including the insertion of sub-rule (1A) and subsequent extensions of deadlines, ultimately allowing assessees to file/revise TRAN-1 by 31.03.2021. The revenue was granted the liberty to verify the genuineness of claims in accordance with the law.

In one specific case, the respondent-assessee had filed GST TRAN-1 within the deadline but failed to avail of CENVAT credit. The court considered whether a fresh opportunity should be granted to file TRAN-1 returns in such cases. The court highlighted that technical difficulties on the common portal did not apply in this scenario and opined that the writ petition should have been dismissed. However, the court found that the relief granted to this respondent was similar to others seeking the benefit of CENVAT credit earned under the previous tax regime. Consequently, the court dismissed the appeal and affirmed the order of the learned single Judge.

Overall, the court dismissed the present writ appeals in line with the order passed in WA No.18/2020 and connected matters. The judgment emphasized the importance of granting relief to assessees for filing/ revising TRAN-1, extending the deadline to 31.03.2021, and ensuring the verification of claims' genuineness. The court's decision was based on a thorough analysis of the legal provisions, historical context, and previous judgments, aiming to uphold fairness and compliance with tax regulations.