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2021 (4) TMI 648 - HC - GSTRejection of request for filing of GST TRAN-1 - petitioner would state that though he made several attempts to file form GST TRAN-1 he could not do so due to technical glitches - HELD THAT - There can be no doubt that the petitioner made effort to upload the details in the web portal. Even according to the respondents though Rule 117 of CGST Rules 2017 originally stipulates that Form TRAN-1 is filed within 90 days there was a periodical extension and the final extended date was 31.03.2020. In the present case the impugned order itself came to be passed on 28.08.2019. Therefore applying the decision made in M/S. CHECKPOINT APPAREL LABELING SOLUTIONS INDIA PRIVATE LIMITED VERSUS THE COMMISSIONER OF GST CENTRAL EXCISE 1. THE COMMISSIONER OF GST CENTRAL EXCISE THE SUPERINTENDENT OF CENTRAL TAX (CGST) THE NODAL OFFICER GST GRIEVANCES GOODS AND SERVICE TAX NETWORK 2020 (8) TMI 209 - MADRAS HIGH COURT the communication impugned in the writ petition is quashed. The Writ Petition is allowed.
Issues:
1. Entitlement to credit under CGST Act. 2. Technical glitches in filing GST TRAN-1 form. 3. Requirement to establish a demonstrable glitch in the portal. 4. Interpretation of Rule 117 of CGST Rules, 2017. 5. Distinction between transition of credit and utilization after verification. 6. Applicability of previous court decisions. 7. Timely uploading of Form TRAN-1. Entitlement to credit under CGST Act: The petitioner, a dealer under TNVAT Act, migrated to the GST regime and claimed credit under the CGST Act. The petitioner asserted an entitlement to a specific credit amount under the CGST Act effective from 01.07.2017. Despite multiple attempts, the petitioner faced technical glitches preventing the filing of form GST TRAN-1, leading to a representation to the sixth respondent. However, the request was rejected citing lack of evidence of a system error. This rejection prompted the filing of a writ petition challenging the decision. Technical glitches in filing GST TRAN-1 form: The petitioner's inability to file form GST TRAN-1 due to technical glitches was a central issue. The court noted the requirement for the assessee to establish a demonstrable glitch in the portal, as per a previous decision. The court highlighted the challenges faced by assesses in providing evidence of technical difficulties, especially considering the evolving nature of rules and requirements in the GST regime. The court expressed concern over the significant litigation arising from Rule 117, emphasizing the need to differentiate between credit transition and utilization post-assessment. Requirement to establish a demonstrable glitch in the portal: The court examined the requirement for the assessee to prove technical difficulties in uploading forms, as reiterated in a circular. The court expressed difficulty in understanding how assesses could have anticipated such a requirement, emphasizing the burden placed on them to collect proof such as screenshots to establish technical glitches. This aspect raised concerns about the practical challenges faced by assesses in complying with evolving regulatory demands. Interpretation of Rule 117 of CGST Rules, 2017: The court delved into the interpretation of Rule 117, highlighting amendments that extended the due date for submitting the declaration electronically in FORM GST TRAN-1. The court emphasized the need for clarity regarding the obligations imposed on assesses regarding technical difficulties and the collection of evidence to support claims of glitches in the system. Distinction between transition of credit and utilization after verification: The court underscored the importance of distinguishing between the transition of credit and its utilization post-assessment by an officer. It emphasized that mere transition did not confer a right on the assessee, with utilization subject to verification and assessment. This distinction was deemed crucial in understanding the obligations and rights of assesses under the GST regime. Applicability of previous court decisions: The court relied on previous decisions from other High Courts to support its findings, citing specific cases where similar issues were addressed. The court referenced the decisions to bolster its reasoning and align the judgment with established legal interpretations in similar contexts. Timely uploading of Form TRAN-1: Considering the petitioner's efforts to upload details and the periodic extensions of the due date for filing Form TRAN-1, the court emphasized the importance of timely compliance. The court, drawing from a previous decision, quashed the impugned communication and directed the respondents to facilitate the uploading of Form TRAN-1 within a specified timeframe. The judgment aimed to ensure procedural fairness and timely resolution of the petitioner's claims.
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