2020 (3) TMI 977 - HC - GST

Filing of FORM GST TRAN-1 - transitional credit - HELD THAT - In view of the Order No.1/2020-GST, dated 7th February, 2020 passed by the Central Board of Indirect Taxes and Customs with regard to the extension of the time limit for submitting the declaration in Form GST TRAN-1 under Rule 117 (1A) of the Central Goods and Services Tax Rules, 2017 in certain cases. The respondents are directed to permit the petitioner to upload the Form GST TRAN-1, which is saved by the petitioner as per the Order No.1/2020-GST, dated 7th February, 2020 passed by the Central Board of Indirect Taxes and Customs. Such exercise shall be completed within a period of two weeks from the date of the receipt of the order.

Summary

Issues:
1. Petitioner's claim for transitional input tax credit under Section 140 of the GST Acts.
2. Dispute regarding technical glitch preventing the uploading of Form GST TRAN-1.
3. Interpretation of Order No.01/2020-GST regarding the extension of time limit for submitting declarations.
4. Applicability of the decision in M/S Siddharth Enterprises Vs. The Nodal Officer to the present case.

Analysis:
1. The petitioner sought a writ of mandamus directing the respondents to grant transitional input tax credit under Section 140 of the GST Acts as claimed in GST TRAN-1. The petitioner also requested interim relief until final hearing. The petitioner's counsel argued that a technical glitch prevented the uploading of the form, although it was saved online. The petitioner's eligibility for credit under Section 140 of the Act was emphasized.

2. The AGP highlighted that the IT-GRC deemed the petitioner's case as not having a technical glitch, thus disallowing the form upload. The petitioner's counsel contended that the glitch was beyond their control, and the form was saved online. The petitioner, a Private Limited Company, was entitled to carry forward credit balances under the Act, which came into force on July 1, 2017.

3. The Order No.01/2020-GST extended the deadline for submitting Form GST TRAN-1 until March 31, 2020, for registered persons facing technical difficulties. The petitioner's grievance could be addressed by allowing the form upload by the specified date. Reference was made to a judgment permitting transitional credit claims irrespective of time limits, emphasizing the constitutional right to property and the procedural nature of the due date provision.

4. Citing the decision in M/S Siddharth Enterprises Vs. The Nodal Officer, the petitioner was directed to upload Form GST TRAN-1 within two weeks of the order receipt. The judgment allowed the filing of declarations to claim transitional credit, declaring the due date provision as procedural and not mandatory. The rule was made absolute without costs, granting relief to the petitioner.