2019 (2) TMI 1218 - HC - GST

Rectification/revision of Form GST TRAN 2 electronically or manually - the present scheme of CGST Act does not allow rectification or revision of the Tran 2 form - Whether an assessee can rectify/revise GST TRAN 2 form subsequent to its uploading? - Held that - Since the Rules of 2017 do not contemplate revision of Form GST TRAN 2, the common portal available under the Act and Rules of 2017, does not provide for revision of Form GST TRAN 2 in the electronic manner. The petitioners are therefore unable to file a revised declaration under Form GST TRAN 2 electronically. There is no mechanism under the Act or Rules of 2017 to file any document manually. Taxing statutes are to be strictly construed. However, such interpretation should not lead to a reckless or a mindless mechanical application of the statute. In the present case, the petitioners contend that, there are mistakes in Form GST TRAN 2 requiring revision. The Form GST TRAN 2, at best, is an admission of the person filing the same with regard to the contents of the document. Admission is a strong evidence against the person making it. However, law contemplates that, the person making such admission has the opportunity to explain the same - The Form GST TRAN 2, at best can be an admission allowing the authorities to inform the state of affairs of the first petitioner in relation to the subject matter governed by such form. However, neither the Act of 2017 nor the Rules of 2017 can be read to mean that, the same excludes the right of a person making an admission, to forfeit the opportunity to explain it. Neither the Act of 2017 nor the Rules of 2017 forfeits the right of a person making an admission to substantiate that, such admission was made by mistake or was untrue. A person filing a Form GST TRAN 2 therefore, should be afforded an opportunity, to explain the Form GST TRAN 2, in the event, such person chooses to do so. Moreover, Form GST TRAN 2 will be taken into consideration for the purpose of assessment. In the assessment proceedings, the person filing the Form GST TRAN 2 would be at liberty to establish by cogent evidence that, the figures filed therein are incorrect or untrue. The Assessing Officer will be obliged to take into consideration such a stand while pronouncing upon the assessment - There is no ground as to why, a person filing Form GST TRAN 2 should not be allowed to revise Form GST TRAN 2 after its initial filing. The authorities are directed to allow the first petitioner to file a revised Form GST TRAN 2, either electronically or manually, in accordance with law, within four weeks from the date of communication of this order - petition allowed.

Summary

Issues: Whether an assessee can rectify/revise GST TRAN 2 form subsequent to its uploading.

Analysis:
The petitioners sought direction to allow revision/rectification of Form GST TRAN 2, claiming a lacuna in the current system violating Article 14 of the Constitution. They argued for similar provisions as in Rule 120 A for TRAN 1 forms. The State contended that TRAN 2 is distinct, not a return like TRAN 1, and should be strictly construed, disallowing revisions. Various provisions of the Central Goods and Services Tax Act, 2017 were cited, emphasizing transitional credit under Section 140 and the power to make rules under Section 164. The Rules of 2017, particularly Rule 117, allow electronic filing of TRAN 1 and TRAN 2, but lack provisions for revision of TRAN 2, unlike the subsequent introduction of Rule 120 A for TRAN 1 revisions.

The judgment highlighted the need for strict construction of taxing statutes but cautioned against mindless application. Case laws were referenced to support the petitioners' claim for revision based on mistakes in TRAN 2. The court emphasized the opportunity for a person making an admission through TRAN 2 to explain or correct it, ensuring fairness in assessment proceedings. It was ruled that a person should be allowed to revise TRAN 2, with authorities retaining the original for assessment comparison. The judgment concluded in favor of the petitioners, directing authorities to permit filing a revised Form GST TRAN 2, electronically or manually, within a specified timeframe, aligning with the principles of fairness and opportunity for rectification.

In conclusion, the judgment addressed the issue of revising GST TRAN 2 forms post-uploading, balancing strict statutory interpretation with fairness and the right to rectify mistakes. It highlighted the importance of allowing assesses the opportunity to explain or correct submitted forms, ensuring a just assessment process. The ruling favored the petitioners, directing authorities to facilitate the revision process, emphasizing the principles of fairness and procedural justice in tax matters.