2018 (2) TMI 766 - HC - GST

Lack of access to online profile on the Goods and Service Tax Network - petitioner unable to generate e-way bills - Held that - The special sessions of Parliament or special or extraordinary meetings of Council would mean nothing to the assessees unless they obtain easy access to the website and portals. The regime is not tax friendly. We hope and trust that those in charge of implementation and administration of this law will at least now wake up and put in place the requisite mechanism. The respondents are directed to reopen the portal and give easy access to the petitioners and all assessees - petition allowed.

Summary

Issues:
1. Access to online profile on Goods and Service Tax Network for a company engaged in manufacturing robotic and automation equipment.
2. Inability to generate E-way bills due to lack of access to online profile.
3. Inability to file necessary returns and pay taxes leading to interest liability and penal consequences.
4. Difficulties faced by the petitioner in availing input tax credit mechanism.
5. Lack of redressal mechanism for grievances related to Goods and Services Tax implementation.

Analysis:
1. The petitioner, a company manufacturing robotic and automation equipment, filed a petition in the High Court due to being unable to access its online profile on the Goods and Service Tax Network despite being granted provisional registration numbers under the Central Goods and Services Tax Act, 2017, and the Maharashtra Goods and Services Tax Act, 2017.
2. The petitioner highlighted the importance of accessing the online profile to generate E-way bills, necessary for moving goods, filing returns, paying taxes, and complying with statutory requirements. The lack of access not only hampers business operations but also exposes the petitioner to interest liability and potential penal consequences.
3. Despite being granted access to the online profile, the petitioner faced challenges in filing necessary returns, particularly Return GSTR-3B, as payment of late fees from October 2017 onwards was required. The petitioner also outlined numerous other difficulties in a further affidavit submitted to the court.
4. The court emphasized that it was not within its jurisdiction to directly address the petitioner's access issues and operational functionality concerns related to the Goods and Services Tax system. It urged the authorities to establish necessary mechanisms and grievance redressal systems to resolve such issues promptly.
5. Expressing dissatisfaction with the current state of affairs, the court highlighted the need for a tax-friendly environment under the Goods and Services Tax regime to ensure easy access to websites and portals for taxpayers. It stressed the importance of preserving the country's image and attracting foreign investments by improving the implementation and administration of tax laws.
6. The court referenced a similar case before the Allahabad High Court and indicated a potential direction to address the petitioner's grievances if necessary. The matter was adjourned to allow respondent no.1 to file an affidavit in reply by a specified date, with a copy provided to the petitioner's advocate.

This detailed analysis of the judgment provides a comprehensive overview of the issues raised by the petitioner and the court's response, emphasizing the importance of efficient implementation and administration of tax laws to facilitate ease of compliance for taxpayers.