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2019 (8) TMI 1080 - HC - GSTUnable to claim transitional credit under DVAT Act - input tax credit - technical glitches in uploading Form TRAN 1 - HELD THAT - The Court would urge the ITGRC to review the policy it has adopted in such cases, and acknowledge instances like the present one, where the Petitioners are not able to link with the Portal and therefore, the fact of a technical glitch is not able to be accounted for in the system. The Court therefore, directs that the Respondents to either open the Portal to enable the Petitioner to again file the TRAN-1 Form electronically, failing which they will accept the TRAN 1 Form already filed manually by the Petitioner - petition disposed off.
Issues:
1. Claim of transitional credit under DVAT Act and input tax credit under GST. 2. Technical glitches preventing online submission of Form TRAN-1 on GST Portal. 3. Eligibility of the Petitioner to claim input tax credit. 4. Manual filing of TRAN-1 form due to system errors. 5. Review of GST system's trial and error phase. 6. Compliance burden on Assessees due to network failures. 7. Policy review by ITGRC for cases of technical glitches. Analysis: 1. The judgment addresses a case where a registered dealer faced challenges in claiming transitional credit under DVAT Act and input tax credit under GST due to technical glitches. The Petitioner, represented by counsel, highlighted that despite eligibility to claim input tax credit, the system disallowed online submission of Form TRAN-1 on the GST Portal after a certain date, resulting in an outstanding credit claim of ?65,03,389. The Petitioner resorted to manual filing of the form, disclosing the ITC amount and carry-forward tax credit, which was duly submitted to the jurisdictional officer. 2. The Court acknowledged the presence of technical errors in the GST system, emphasizing its trial and error phase. It noted that the Petitioner's inability to connect with the server might not have been registered due to system failures. The Respondents did not dispute the Petitioner's eligibility for the claimed ITC amount. Citing previous orders, the Court highlighted the burden on Assessees to comply with the law amidst network failures, urging a review of the ITGRC's policy in such cases to address instances like the Petitioner's. 3. Referring to precedents like Bhargava Motors v. Union of India and other cases, the Court emphasized the evolving nature of the GST system and the challenges faced by taxpayers. It stressed that expecting strict compliance in the face of network failures or system errors would be unreasonable. The Court directed the Respondents to either facilitate electronic filing of the TRAN-1 Form or accept the manually filed form, ensuring the Petitioner's claim is processed as per the law. 4. In conclusion, the writ petition and application were disposed of with the directive for the Respondents to address the technical challenges faced by the Petitioner in claiming input tax credit, underscoring the need for a more accommodating approach towards taxpayers encountering system-related issues.
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