2022 (7) TMI 605 - HC - GST

Seeking issuance of writ of mandamus to command the authorities - seeking to allow revision and/or correction of Form GST TRAN-1 either on the portal or manually for the purpose of claiming transitional credit under Section 140 read with Rule 117 of the Central Goods and Services Tax Act, 2017 - HELD THAT - After going through the materials on record this Court finds that the issue raised in this writ petition is squarely covered by the judgment in the case of M/s. Das Auto Centre 2021 (12) TMI 835 - CALCUTTA HIGH COURT where it was held that It is clearly clearly brought out the difficulties faced by the assesses and also as to how the assesses having substantially complied with the requirement under law and having been entitled to credit on account of transition to the GST regime which is beyond the purview of the assessee and the assessee cannot be put to prejudice on account of technicalities. Thus, keeping the underlying principle in mind if the matter is examined then we are inclined to lean in favour of the writ petitioners and affirm the directions issued by the learned Single Judge. Though the petitioner claims that he has filed GSTR-3B Form on June 1, 2018 but the admitted factual position is that the petitioner ultimately did not get any relief. Therefore, this Court is of the considered view that liberty is to be granted to the petitioner/assessee to file individual tax credit in GSTR-3B Form and if such Form is filed in terms of this order, the authorities shall act on the GSTR-3B Form filed pursuant to this order. The writ petition stands allowed by giving liberty to the writ petitioner/assessee to file individual tax credit in GSTR-3B Forms for the month of August 2022 to be filed in the month of September 2022 and the concerned authority/Assessing Officer would be at liberty to verify the genuineness of the claim of the petitioner and pass orders accordingly.

Summary

Issues:
1. Petitioner seeks mandamus for revision of Form GST TRAN-1 for claiming transitional credit.
2. Petitioner claims entitlement to carry forward Input Tax Credit under CGST Act.
3. Allegations of technical glitches and incorrect filing of Form TRAN-1.
4. Dispute over Input Tax Credit verification by the Assessing Officer.
5. Reference to previous judgments regarding Input Tax Credit claims.
6. Court's consideration of difficulties faced by assesses in GST regime transition.
7. Decision to allow petitioner to file individual tax credit in GSTR-3B Form.

Analysis:
1. The petitioner, an authorized Maruti Dealer, sought a writ of mandamus to revise Form GST TRAN-1 for claiming transitional credit under CGST Act. The petitioner claimed entitlement to carry forward Input Tax Credit from July 2016 to June 2017 but faced issues due to technical glitches and incorrect filing of the form.
2. The entitlement to Input Tax Credit under Section 140 of the CGST Act is subject to verification by the Assessing Officer. The court emphasized that the denial of Input Tax Credit on procedural grounds is impermissible as it is a vested right.
3. Previous judgments, including those from the High Courts of Madras, Bombay, and Allahabad, highlighted the challenges faced by assesses in transitioning to the GST regime. The courts directed authorities to facilitate revision of Form TRAN-1 to address technical difficulties faced by assesses.
4. The court acknowledged the difficulties faced by assesses in complying with GST requirements and emphasized the need to protect their rights despite procedural challenges. The court allowed the petitioner to file individual tax credit in GSTR-3B Forms for future months, with verification by the Assessing Officer.
5. The court set aside a communication from the Assistant Commissioner and quashed it, granting the petitioner the liberty to file individual tax credit claims in GSTR-3B Forms for future months. The Assessing Officer was directed to verify the genuineness of the claims and act accordingly.