2018 (10) TMI 1043 - HC - GST

Permission to file revised declaration in Form TRAN1 for the left over CENVAT Credit - time limit for filing revised Form GST TRAN1 - vires of Rules117 and 120A of the Central Goods and Service Tax Act, 2017. Petitioners would contend that the TRAN1 declaration was filed within time and attempt was also made before the last date, i.e. 27.12.2017, to correct a pure typographical error. However, the system did not accept such correction. Held that - The extended time for making declaration, which was extended upto 27.12.2017, would take within its fold, any typographical or such other corrections, which may be noted in the declaration already filed. Even otherwise, the case of the petitioners would, perhaps, fall within the situation of the assessee being unable to file correct declaration due to technical glitches on the official portal, for which purpose, the Commissioners are authorized to grant extension upto 31.03.2019. Notice returnable on 30.10.2018.

Summary

Issues:
1. Challenge to the vires of Rules 117 and 120A of the CGST Act regarding the time limit for filing revised Form GST TRAN1.
2. Petition for direction to allow filing of revised declaration in Form TRAN1 for CENVAT Credit.
3. Allegation of typographical error leading to potential loss of CENVAT Credit migration to GST regime.
4. Inability to correct TRAN1 declaration due to system issues despite attempts within the extended time limit.

Analysis:

1. The petitioners challenged the vires of Rules 117 and 120A of the CGST Act, which prescribe the time limit for filing revised Form GST TRAN1. However, a previous judgment had rejected a similar challenge, thereby concluding the challenge to the statutory provisions regarding the time limit. This aspect of the petitioners' challenge was thus already settled.

2. The main grievance of the petitioners revolved around the need to file a revised declaration in Form TRAN1 for the remaining CENVAT Credit amount. The petitioners highlighted a typographical error in the initial filing of Form TRAN1, where the admissible CENVAT Credit was erroneously shown as "Nil." This error potentially jeopardized the migration of the remaining CENVAT Credit to the GST regime.

3. Despite attempts to rectify the error within the extended time limit for filing Form TRAN1, the petitioners faced obstacles due to system issues. Communications with the authorities regarding the error and attempts to correct it were met with responses advising on system requirements and login procedures, which did not resolve the issue. The petitioners expressed concern that the inability to correct the error would result in the loss of the entire CENVAT Credit balance.

4. The court acknowledged the prima facie validity of the petitioners' claim that the extended time limit for filing declarations should encompass corrections for typographical errors made in the initial filing. Additionally, the situation where technical glitches on the official portal hindered the correction process was considered, suggesting that such cases could warrant an extension granted by the Commissioners until a specified date.

In conclusion, while the challenge to the statutory provisions regarding the time limit had been previously dismissed, the petitioners' plea for the allowance of a revised declaration in Form TRAN1 due to a typographical error impacting CENVAT Credit migration warranted further examination. The court scheduled a notice returnable date to address the issues raised and permitted direct service for the proceedings.