2018 (11) TMI 709 - HC - GST

Refund of the amount of tax paid before introduction of GST - rejection on the ground that the petitioner has not filed TRAN-1 Form - Held that - The claim for refund of the tax already paid by the petitioner, was rejected, vide impugned order merely on the ground that TRAN-1 Form was not submitted within time and admittedly, the date for submission of TRAN-1 Form has been extended upto 31.3.2019, the impugned order passed by the Assistant Commissioner dated 18.4.2018 is set aside and the matter is remitted to the Assistant Commissioner for fresh consideration - petition allowed by way of remand.

Summary

Issues involved:
Challenge to rejection of refund claim for tax paid before introduction of Goods & Service Tax due to failure to file TRAN-1 Form within the specified time.

Analysis:
The petitioner approached the High Court challenging the rejection of their claim for refund of tax paid before the introduction of Goods & Service Tax (GST) due to not filing the TRAN-1 Form. The primary ground for rejection was the non-submission of the form. The petitioner's counsel argued that the last date for submitting the form was initially 27.12.2017 but had been extended multiple times, with the current deadline set at 31.3.2019 as per the amendment in the GST Rules. The respondents' counsel acknowledged the extension of the deadline for submitting the TRAN-1 Form. Considering the extension of the deadline and that the claim was rejected solely due to the form not being submitted on time, the High Court set aside the impugned order and remitted the matter back to the Assistant Commissioner for fresh consideration. The petitioner was directed to appear before the Assistant Commissioner on a specified date for further proceedings.

This judgment highlights the importance of timely compliance with procedural requirements such as filing necessary forms within the prescribed deadlines under the GST regime. It also underscores the significance of ensuring that claim rejections are based on valid grounds and that claimants are given the opportunity to rectify procedural deficiencies within the extended timelines provided by law. The decision reflects a balanced approach by the High Court in ensuring procedural fairness and allowing the petitioner the chance to avail the benefit of input tax credit by submitting the required form within the extended deadline.