2022 (11) TMI 393 - HC - GST

Correctness of action of closing the facility to file Form GST TRAN 3 on the common portal of www.gst.gov.in - HELD THAT - Supreme Court in Union of India vs. Filco Trade Centre Pvt. Ltd. 2022 (7) TMI 1232 - SC ORDER has directed Goods and Service Tax Network (GSTN) to open the common portal for filing concerned forms for availing transitional credit through TRAN-1 and TRAN-2 for two months with effect from 01.09.2022 to 31.10.2022 now extended to 30.11.2022. Further, GSTN has been directed to ensure that there are no technical glitches during the extended period. Concerned officials have been given 90 days time thereafter to verify the veracity of the claim/transitional credit and to pass appropriate orders thereafter. Supreme Court has also directed that the allowed transitional credit should be reflected in the electronic credit ledger. It would be in the interest of justice if the petitioner is allowed to upload table 2 of Form GST TRAN 3 within the aforesaid period which will however be subject to due verification of the respondents - Petition disposed off.

Summary

Issues:
1. Challenge to time limit for filing Form GST TRAN-3
2. Action of closing the facility to file Form GST TRAN-3 on the common portal
3. Relief sought by the petitioner
4. Technical glitches preventing petitioner from uploading details in Form GST TRAN-3
5. Counter affidavit filed by respondent Nos.1 and 3
6. Application of Supreme Court directive in Union of India vs. Filco Trade Centre Pvt. Ltd.
7. Decision on allowing petitioner to upload table 2 of Form GST TRAN-3

Analysis:
1. The petitioner challenged the time limit to file Form GST TRAN-3, arguing it was ultra vires Section 37 of the Central Excise Act 1944 and Rule 15 of the Cenvat Credit Rules 2017, violating constitutional provisions. The petitioner sought various reliefs, including declaring the time limit as arbitrary and unreasonable, and directing the respondents to credit a sum to the petitioner's Electronic Credit Ledger or refund accrued credit from the pre-GST regime.

2. The focus of the hearing shifted to the action of closing the facility to file Form GST TRAN-3 on the common portal www.gst.gov.in. The petitioner confined the argument to this specific issue during the proceedings.

3. The Government of India issued Notification No.21/2017 concerning the filing of Form GST TRAN-3, specifying requirements for manufacturers and dealers availing credit on Credit Transfer Document. The petitioner, a dealer, faced technical glitches preventing timely upload of details in Form GST TRAN-3, leading to the filing of the writ petition.

4. Respondent Nos.1 and 3 filed a counter affidavit opposing the petitioner's plea, setting the stage for a legal confrontation on the matter.

5. The Court referred to a Supreme Court directive in Union of India vs. Filco Trade Centre Pvt. Ltd., instructing GSTN to open the common portal for filing transitional credit forms for a specified period, ensuring no technical glitches. Officials were given a timeline for verification of claims and reflecting allowed transitional credit in the electronic credit ledger.

6. In line with the Supreme Court directive, the Court decided in favor of allowing the petitioner to upload table 2 of Form GST TRAN-3 within the specified period, subject to verification by the respondents. The benefit would be extended to the petitioner only after due verification.

7. Consequently, the writ petition was disposed of, with miscellaneous applications pending to stand closed, and no order as to costs was issued, concluding the legal proceedings.