2021 (11) TMI 975 - HC - GST

Validity of grievance ticket - reopening of the grievance ticket - opportunity to revise Form Tran 1 electronically - transitional credit u/s 140(1) of CGST Act, 17 - Section 140 of CGST Act, 17 and Rule 117 of CGST Rules - HELD THAT - Though the allegations and counter allegations have been made as regards uploading or non-uploading, ability to upload and inability to upload, the fact remains that, what is sought to be uploaded are relating to transactions which occurred prior to 27.12.2017 which are evidenced by records including transactions carried out through normal banking channels. It is these transactions which have already occurred prior to the introduction of GST regime which are sought to be filed by uploading the Form in Tran- 1. More so because there is a new procedure which has been prescribed and new methodology which has been adopted for the assessment etc., an assessee cannot be deprived of any input credit that he may be entitled to only on account of non-uploading of a particular form. What is sought for by the assessee herein is for an opportunity to upload Tran 1 form containing the details of the transaction conducted by the Assessee prior to 27.12.2017, the filing of the form by itself would not entitle the assessee for any particular credit input or otherwise, the same would always be subject to scrutiny by the authority and if there are any false information found in the information which is uploaded by way of the above forms, the authorities have necessary powers under the Act to deal with the same. A certiorari is issued, the closure of the grievance ticket raised by the petitioner vide Annexure-H is quashed. A mandamus is issued directing the respondent authorities to open the portal to enable the petitioner to upload the necessary forms, if the portal cannot be opened to permit the assesse to file hard copies of the said form and act thereon. The writ petition is partially allowed.

Summary

Issues:
Petitioner seeking writs of certiorari and mandamus to challenge the closure of grievance ticket, seeking reopening of grievance ticket and approval of case for transition credit, and requesting High Court to pass necessary orders.

Analysis:
The petitioner approached the High Court seeking relief through writs of certiorari and mandamus. The petitioner challenged the decision of respondent No.4 to close their grievance ticket as illegal, arbitrary, and ultra vires Section 140 of the CGST Act, 17 and Rule 117 of CGST Rules, 17. The petitioner requested the court to quash the decision and direct respondent No.4 to reopen the grievance ticket and refer the petitioner's grievance to respondent No.3 in accordance with the GST Council's policy decision. Additionally, the petitioner sought directions for respondent No.5, 6, and 7 to refer the grievance to respondent No.3 and for respondent No.3 to approve the case and grant an opportunity to revise Form Tran 1 to claim transition credit under the CGST Act, 17.

The respondent's counsel contended that the petitioner had not produced any evidence to establish their attempt to upload Form Tran 1 on the respondent's website. However, the court referred to a previous decision and highlighted two types of cases for consideration: registered persons who did not file Tran-1 by the deadline and those who loaded Tran-1 but intended to revise it due to errors. The court emphasized the legitimate rights of petitioners to carry forward unutilized credit and the absence of specific provisions for revision filing under Section 140 of the Act.

The court allowed the writ petitions, directing the respondents to permit the petitioners to file or revise the Tran-1 electronically or manually by a specified date. The Division Bench also confirmed this decision in a subsequent case. The court emphasized that the filing and uploading of forms under CGST provisions are transitory, and a beneficial treatment must be extended to the assessee to facilitate filings and obtain entitled input credit.

In conclusion, the court partially allowed the writ petition, quashing the closure of the grievance ticket and directing the respondent authorities to open the portal for the petitioner to upload necessary forms. The court highlighted the importance of providing adequate opportunities to assesses and ensuring that technical grounds do not deprive them of entitled benefits under the tax system. The authorities were reminded of their powers to verify the details uploaded by the assesses.