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2022 (4) TMI 597 - HC - GSTTransitional Credit - Calling for production of records - seeking permission to amend/revise the Form GST TRAN-1 manually or online, by including the omitted amount CENVAT credit of eligible duties or grant refund of said duties - HELD THAT - Input Tax Credit on capital goods, Service Tax or Inputs availed under the provisions of the Central Excise Act, 1944, Finance Act, 1994 and Value Added Tax Act, 2006 which have been subsumed into the respective GST enactment can be allowed to be carried forward for being adjusted towards tax liability, if indeed such credit was lying un-utilized in the CENVAT account or VAT returns prior to the implementation of GST. Such amount cannot be denied for being utilized for discharging the tax liability under the respective GST enactments. This Writ Petition is disposed off by directing the jurisdictional officer to examine the petitioner's CENVAT account or VAT returns and ascertain whether any such credit was lying un-utilized as on 30.06.2017 and if such credit existed in the CENVAT account or VAT returns of the petitioner, the amount shall be either refunded back by way of credit in the Electronic Cash Register of the petitioner or allowed to be transitioned notwithstanding the fact that the petitioner may have failed to file TRAN-1 in time.
Issues:
1. Delay in filing Form GST TRAN-1 by the petitioner. 2. Discrepancy regarding the filing of TRAN-1 on the GST portal. 3. Claim of technical/system error by the petitioner for reopening TRAN-1. 4. Denial of transition of credit by the respondents. 5. Validity of input tax credit on capital goods under various enactments pre-GST. 6. Rectification of mistakes in TRAN-1 and refund of input tax credit. 7. Application of the principle of substantial compliance in granting input tax credit benefits. 8. Judicial interpretations regarding denial of input tax credit based on technicalities. Analysis: 1. The petitioner failed to file Form GST TRAN-1 on time and later claimed a technical error for not filing it within the extended deadline. The petitioner sought permission to amend/revise the form to claim the omitted CENVAT credit. 2. The respondents disputed the petitioner's claim, stating that no return was filed within the stipulated period or by the given date. They required evidence of filing TRAN-1 on the GSTN portal, which the petitioner failed to provide satisfactorily. 3. The respondents contended that the petitioner's claim to reopen TRAN-1 lacked evidence of technical/system errors during the initial filing. This lack of evidence hindered the processing of the petitioner's claim by the proper officer. 4. The Court referred to previous judgments emphasizing substantial compliance for granting input tax credit benefits, highlighting the public interest in reducing tax cascading effects despite technicalities. 5. The Court affirmed that input tax credit on capital goods under pre-GST enactments must be allowed to be carried forward for adjusting tax liabilities under GST, emphasizing the indefeasible nature of such credits. 6. Emphasizing the importance of rectifying mistakes in TRAN-1 and refunding input tax credit, the Court directed the respondents to consider the petitioner's representation and dispose of it within a specified timeframe. 7. The Court reiterated that denial of validly availed input tax credit under previous enactments, now subsumed into GST, is impermissible, emphasizing that the system should facilitate such transitions for the benefit of the industry. 8. In conclusion, the Court directed the jurisdictional officer to examine the petitioner's accounts for unutilized credits and instructed the respondents to refund or transition such credits within a specified period, despite the petitioner's initial filing delays. This detailed analysis of the judgment showcases the Court's interpretation of the legal issues surrounding the petitioner's claim for input tax credit and the respondents' denial based on technicalities, emphasizing the principles of substantial compliance and the indefeasible nature of validly availed credits.
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