2021 (12) TMI 470 - HC - GST

Transitional Credit - mistake made while submitting a declaration electronically in form GST TRAN-1 under Rule 117 of the Central Goods and Services Tax Rules, 2017 - HELD THAT - The present matter is governed by Rule 117 of the said Rules of 2017. Thus, on plain reading of the Rule, a registered person who has submitted a declaration electronically in the relevant form is entitled to revise the declaration and file it afresh within the period stipulated in Section 117 of the said Rules of 2017. However, there is also a possibility of the time for filing the revised declaration to be enlarged by a general order or a specific order of the Commissioner as the expression or such further period as may be extended by the Commissioner suggests. It is possible that the period for filing the declaration under the relevant Rules, including under Rule 117 of the said Rules of 2017, is extended by a general order of the relevant Commissioner. In such an event, the time for filing a declaration under the relevant Rules, including under Rule 117 of the said Rules of 2017 which is relevant in the present case, would stand extended. The expression also permits the Commissioner to make a specific extension at the request of a registered person who had submitted a declaration electronically in the relevant form and then seeks to revise the declaration after the time for submitting the declaration has expired. It does not appear that the petitioner herein availed of such opportunity or requested the relevant Commissioner for a specific extension so that the petitioner could revise the declaration already furnished. The petition is allowed by permitting the writ petitioner to make a specific request to the relevant Commissioner under Rule 120A of the said Rules of 2017 to extend the time for the petitioner to file a revised declaration upon correcting whatever mistake may be perceived to have been committed in the course of the initial filing. If such request is made by the petitioner to the relevant Commissioner within a fortnight from date, the Commissioner will consider the matter in appropriate perspective and without reference to the order impugned dated August 12, 2021.

Summary

Issues:
1. Mistake in submission of declaration under Rule 117 of the Central Goods and Services Tax Rules, 2017.
2. Challenge to show-cause notice issued by the department.
3. Interpretation of Rule 120A for revision of declaration in FORM GST TRAN-1.
4. Petitioner's request for extension to file a revised declaration.
5. Coercive action against the petitioner pending Commissioner's decision.

Analysis:
1. The petitioner, an assessee, claimed a mistake in submitting a declaration electronically under Rule 117 of the Central Goods and Services Tax Rules, 2017, during the transition from the previous central excise regime to the GST regime. A show-cause notice was issued by the department, leading to the petitioner challenging it under Article 226 of the Constitution.

2. The petitioner responded to the show-cause notice, highlighting the lack of experience during the transitional phase which led to the mistake. Although no specific request for a revised declaration was made, the response implied the need for rectification to claim due credit.

3. Rule 120A allows a registered person to revise a declaration submitted electronically in FORM GST TRAN-1 within the specified time period. The rule permits revision based on the timelines stipulated in relevant provisions, with the possibility of extension by the Commissioner upon request.

4. The petitioner did not avail the opportunity to request an extension for revising the declaration. The court allowed the petitioner to make a specific request to the Commissioner under Rule 120A to extend the time for filing a revised declaration, upon correcting any perceived mistake within a fortnight.

5. Pending the Commissioner's decision on the extension request, no coercive action will be taken against the petitioner based on the original show-cause notice or the challenged order. The Commissioner is empowered to assess any inadvertence or mistake in the declaration filing process and take appropriate action in accordance with the law.

This detailed analysis of the judgment highlights the issues raised by the petitioner, the interpretation of relevant rules, and the court's decision to allow the petitioner an opportunity to rectify the mistake in the declaration submission process.