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2019 (8) TMI 1079 - HC - GSTUnable to avail Input Tax Credit - Form TRAN 1 - HELD THAT - There appear to be technical errors or technical glitches of various kinds in the GST system, which is still in the trial and error phase. There is merit in the contention of the Petitioner that in its case, if it was not able to even connect with the server, then at the end of the Respondents, the fact of a failed attempt at filing a return may not even be registered on the system. Added to this is the fact that the Petitioner s eligibility to claim CGST input in the sum of ₹ 3,82,08,278.53 has not been disputed by the Respondents in their reply. The Court therefore, directs that the Respondents to immediately process the Petitioner s representation dated 28th March 2019 and either reflect the ITC claim of the Petitioner in the electronic credit ledger or communicate to the Petitioner the reasons for its inability to do so on or before 13th September 2019. Petition disposed off.
Issues:
1. Claim for input tax credit (ITC) due to technical glitches. 2. Reversal of ITC claim and non-reflection in electronic ledger. 3. Dispute over eligibility to claim ITC. 4. Technical errors in the GST system. 5. Compliance burden on Assessees during trial and error phase of GST system. Analysis: 1. The petitioner was unable to claim input tax credit (ITC) amounting to ?3,82,08,278.53 in Form TRAN-1 due to technical glitches. The claim was uploaded on the web portal but later reversed based on an email from the authorities alleging excess ITC availed by the petitioner. 2. Despite the petitioner's efforts to resolve the issue by following up with the GST helpdesk and making representations, the ITC claimed was not reflected in the electronic credit ledger maintained by the authorities. The petitioner was compelled to reverse the claim for ITC in subsequent returns, leading to financial implications. 3. The eligibility of the petitioner to claim ITC was not disputed by the authorities. However, due to technical errors in the GST system, the petitioner faced challenges in connecting with the server, resulting in the failure of the system to register the filing attempt. The authorities did not contest the petitioner's eligibility to claim CGST input. 4. The court acknowledged the technical errors and glitches in the GST system, emphasizing that it is still in a trial and error phase. Referring to previous judgments, the court highlighted the burden on Assessees to comply with the law when facing network failures or system errors beyond their control. 5. In light of the above, the court directed the authorities to process the petitioner's representation promptly and either reflect the ITC claim in the electronic credit ledger or provide reasons for the inability to do so. The petitioner was given the option to seek legal remedies if aggrieved by the decision, ensuring access to justice in accordance with the law. The writ petition and application were disposed of based on these terms.
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