2020 (7) TMI 162 - HC - GST

Filing of Form TRAN-1 - transitional credit - time limitation - vires of Rule 117(1A) of Haryana GST Rules, 2017 - HELD THAT - The Petitioner has challenged vires of Rule 117 (1A) of Rules, however we do not think it appropriate to declare it invalid as we are of the considered opinion that Petitioner is entitled to carry forward Cenvat Credit accrued under Central Excise Act, 1944. The Respondents have repeatedly extended date to file TRAN-I where there was technical glitch as per their understanding. Repeated extensions of last date to file TRAN-I in case of technical glitches as understood by Respondent vindicate claim of the Petitioner that denial of unutilized credit to those dealers who are unable to furnish evidence of attempt to upload TRAN-I would amount to violation of Article 14 as well Article 300A of the Constitution of India. The Respondents are directed to permit Petitioner to upload TRAN-I on or before 30.06.2020 and in case Respondent fails to do so, the Petitioner would be at liberty to avail ITC in question in GSTR-3B of July 2020 - Petition allowed.

Summary

Issues:
Challenge to vires of Rule 117(1A) of Haryana GST Rules, 2017 and seeking direction to upload form TRAN-I for credit of excess VAT due to technical glitches.

Analysis:
1. The petitioner, a partnership firm, sought to avail credit of duties and VAT through form GST TRAN-1 but failed due to technical issues on the GST Portal. The Commissioner extended the deadline for filing TRAN-I till 31.03.2020. The issue was compared to previous judgments by various courts.

2. The counsel contended that the matter aligns with previous judgments, including Adfert Technologies Pvt. Ltd. case. The High Court of Delhi allowed filing of TRAN-I till 30.06.2020 for similarly situated taxpayers. The court emphasized the need for a fair approach by the government towards taxpayers.

3. The court noted that a Division Bench previously allowed similar petitions, directing the opening of the portal for TRAN-I upload. The High Court of Delhi also permitted revision of TRAN-I till 30.06.2020, emphasizing the protection of taxpayers' rights and the unfairness of restrictive interpretations by the government.

4. The court acknowledged that the issue was covered by previous judgments and allowed the present petition. The petitioner was directed to upload TRAN-I by 30.06.2020, with the option to claim ITC in GSTR-3B of July 2020 if the respondent fails to facilitate the upload. The respondents were granted the right to verify the claims made by the petitioner.