2022 (1) TMI 799 - HC - GST

Reopening of portal for filing of form TRAN-1 - denial of benefit of Input Tax Credit - HELD THAT - The facts on record indicates that right from the beginning, the petitioner has been writing letters/representation to the respondents to allow the petitioner to file TRAN-1 and that the petitioner had experienced the difficulties on account of technical glitches in the GST web portal of the respondents. Since the issue is covered in favour of the petitioner, this writ petition is allowed. Decided in favor of petitioner.

Summary

Issues:
- Interpretation of Input Tax Credit scheme under GST law.
- Technical glitches in GST web portal affecting filing of TRAN-1.
- Relief to be granted to petitioner based on previous court decisions.

The judgment by the High Court of Madras addressed the issue of Input Tax Credit under the GST law. The court referred to a previous decision by the Division Bench, emphasizing the importance of substantial compliance over technicalities in granting Input Tax Credit benefits. The court noted the petitioner's efforts in communicating with the respondents regarding the filing of TRAN-1 and the technical challenges faced due to glitches in the GST web portal. Based on the favorable precedent and the petitioner's circumstances, the court allowed the writ petition, granting consequential relief to the petitioner without imposing any costs. The court's decision was in line with the principle of facilitating the Input Tax Credit scheme and ensuring the efficient functioning of the GST system despite technical obstacles.

The judgment highlighted the significance of addressing technical glitches in the GST web portal that hindered the petitioner's ability to file TRAN-1. The court acknowledged the petitioner's persistent efforts in seeking permission to file the necessary documents and recognized the challenges posed by the technical issues. By granting relief to the petitioner and allowing the writ petition, the court demonstrated a practical approach in ensuring that genuine difficulties faced by taxpayers in utilizing Input Tax Credit benefits are duly considered and resolved. The decision underscored the importance of maintaining the integrity of the GST system while accommodating genuine grievances arising from technical impediments.

In conclusion, the High Court of Madras, guided by previous legal interpretations and considerations of the challenges faced by the petitioner, delivered a judgment that upheld the principles of substantial compliance and the facilitation of Input Tax Credit benefits under the GST law. By allowing the writ petition and providing consequential relief to the petitioner, the court demonstrated a balanced approach that prioritized the larger public interest of reducing the cascading effect of multiple taxes. The judgment underscored the court's commitment to ensuring the smooth functioning of the GST system while addressing technical obstacles that may impede taxpayers from availing their rightful benefits.