2019 (3) TMI 489 - HC - GST

Extension of time for filing GST Tran-1 - transitional credit - transition to GST regime - Held that - The respondents are directed to open the portal before 31st of March 2019. In the event they do not do so, they will entertain the GST TRAN-1 of the petitioner manually and pass orders on it after due verification of the credits as claimed by the petitioner. List this matter on 10.04.2019.

Summary

Issues:
- Petitioner seeking writ of mandamus to extend time for filing GST Tran-1
- Allegation of electronic system failure causing potential loss of credit
- Direction to respondents to open portal or entertain manual filing if portal not opened
- Requirement for respondents to verify credits and allow regular tax payment

Analysis:
The petitioner in this case sought a writ of mandamus directing the GST council, respondent no.2, to extend the time period for filing GST Tran-1 due to alleged non-entertainment of the application on the last date. The petitioner claimed that despite efforts, the electronic system did not respond, potentially leading to loss of entitled credit. The court directed the respondents to open the portal before a specified date and if not done, to entertain the GST TRAN-1 manually. This manual filing would be subject to verification of credits claimed by the petitioner to ensure no loss of credit. Additionally, the court mandated that the petitioner should be allowed to pay taxes using the regular electronic system, maintaining the credit use for the petitioner.

The judgment emphasizes the importance of ensuring that technical failures do not result in undue prejudice to taxpayers, especially regarding the entitlement to tax credits. By directing the respondents to facilitate manual filing and verification of credits, the court aims to protect the petitioner's rights and prevent any loss of credit that may have occurred due to system issues. The court's order to allow regular tax payment through the electronic system further ensures that the petitioner can continue business operations without disruption while the credit issue is being resolved.

The court's decision showcases a balanced approach to addressing the petitioner's concerns while also upholding the integrity of the tax system. By setting a deadline for portal opening and mandating manual filing if necessary, the judgment strikes a balance between providing relief to the petitioner and maintaining compliance with tax regulations. The requirement for the respondents to verify credits and allow regular tax payments demonstrates a commitment to ensuring fair treatment of taxpayers and safeguarding their entitlements under the law. The court's direction for filing a counter affidavit within a specified timeframe indicates a procedural step to further clarify and address any additional issues raised by the respondents in response to the petition.