2021 (12) TMI 122 - HC - GST

Reopening of portal for filing of Form TRAN-1 - validity of Rules 117 to 120A of the CGST Rules, 2017 - HELD THAT - Though, it is the case of the respondents that such a technical glitch/error cannot be considered as an error on the GST common portal, yet this Court in the case of SUPER INDIA PAPER PRODUCTS BENLON INDIA LTD., AND OTHERS VERSUS UNION OF INDIA THROUGH MINISTRY OF FINANCE, SECRETARY ORS. UNION OF INDIA ORS. COMMISSIONER, DELHI GOODS SERVICES TAX ANR. 2021 (6) TMI 108 - DELHI HIGH COURT where it was held that In the opinion of this Court, a genuine mistake should not result in the Petitioners losing out on their accumulated credit which is protected by Article 300A of the Constitution. The lack of an effective revisional mechanism would leave the taxpayers remediless, which, to our minds, could not be the intention of the law, and moreover, no provision was brought to our notice which extinguishes the said right of the taxpayer. The present writ petition is allowed in accordance with paragraphs 28 and 29 of the judgment of this Court in Super India Paper Products. However, the date for accepting the TRAN-1 Form electronically or manually shall be read as 15th December, 2021. Petition allowed.

Summary

Issues:
- Petition seeking direction to open common portal for filing TRAN-1 electronically or allow manual revision.
- Challenge to the validity of Rules 117 to 120A of the CGST Rules, 2017.
- Challenge to the legality of Circular No. 39/13/2018-GST.
- Prayer for any other suitable writ, order, or direction.
- Request for costs of the petition and additional reliefs.

Analysis:
1. The petitioner filed a writ petition seeking a mandamus to open the common portal for filing TRAN-1 electronically or allow manual revision to avail transitional credit. The petitioner faced technical glitches preventing the filing of TRAN-1 but submitted grievances and letters to the respondents highlighting the issue.

2. The respondents contested the petitioner's claim based on a screenshot of invoices uploaded on the portal, arguing it did not constitute an error. However, the court referred to a previous case where similar evidence was accepted, emphasizing that technical glitches on the GST portal could prevent filing. The court allowed taxpayers to file manually or electronically, recognizing the challenges faced by taxpayers, especially those lacking electronic records.

3. The court referred to cases where relief was granted to taxpayers unable to file TRAN-1 due to system glitches, emphasizing the importance of not depriving taxpayers of their property rights without legal authority. The court directed the respondents to re-open the online portal to enable filing of TRAN-1 electronically or accept manual filing, ensuring processing of claims in accordance with the law.

4. The court allowed the present writ petition in line with previous judgments, setting a deadline of 15th December 2021 for accepting the TRAN-1 Form electronically or manually. The petition and pending applications were disposed of accordingly, granting relief to the petitioner in line with the principles established in previous cases.

This detailed analysis highlights the court's considerations regarding technical glitches, property rights of taxpayers, and the need for fair treatment in allowing manual filing to avail transitional credit under the GST regime.