2024 (7) TMI 1034 - HC - GST

Direction upon the respondents to allow the petitioner to upload the input tax credit certificate in the web portal of the respondent authorities by condoning the delays in the petitioner s attempt to upload such certificate - HELD THAT - The petitioner who is small businessman was dependent on his chartered accountant for filing his return. It was the Covid-19 period. The petitioner had duly made an application for withdrawal from composition scheme. Such application of the petitioner was submitted on 12th November 2021 and the same was approved by the authorities. Although the petitioner was required to make a declaration electronically on the common portal in Form GST ITC-01 within 30 days from the date of approval it appears that there was a delay of 2 days. The fact that the petitioner was prevented from submitting his return within the time specified is not called in question by the authorities/ by the Joint Commissioner. In fact the Joint Commissioner has accepted the explanation given by the petitioner. Although a defence is being sought to be set up by the respondents that there is no provision for condonation of delay the respondents cannot be permitted to raise such defence having not challenged the order dated 9th March 2022. In any event the aforesaid defence set up by the respondents is misconceived as would appear from Rule 40 (1) (b) of the said Rules. Since from the order dated 1st April 2022 it would be apparent that the Joint Commissioner State Tax had accepted the explanation given by the petitioner and had found that the delay was condonable in the fact of the case however having not been identified any provision in the Act or Rules he did not allow the application in the peculiar circumstances this is a fit case for directing to the respondent authorities to condone delay and permit the petitioner to file Form GST ITC-01. The writ petition stands disposed of.

Summary

Issues:
1. Delay in uploading input tax credit certificate on the web portal.
2. Condonation of delay in filing Form GST ITC-01.
3. Interpretation of Rule 40(1)(b) of the West Bengal Goods and Services Tax Rules, 2017.

Analysis:
1. The petitioner sought direction to upload the input tax credit certificate on the web portal, citing delays due to pandemic and medical reasons. The petitioner's application for withdrawal from the composition scheme was approved, requiring the certificate upload within 30 days. Despite a 2-day delay, the authorities rejected the condonation request, prompting a writ petition (WPA 3479 of 2022) and subsequent court orders for reconsideration.

2. The Joint Commissioner rejected the condonation citing lack of legal provision, despite finding the petitioner's explanation satisfactory. The petitioner argued for condonation based on a similar case precedent from the Allahabad High Court. The State GST and CGST authorities opposed, relying on the Privy Council judgment in Maqbul Ahmad v. Onkar Pratap Narain Singh (AIR 1935 PC 85), emphasizing timely filing requirements.

3. The High Court noted the petitioner's reliance on Rule 40(1)(b), allowing the Commissioner to extend time limits. The court found the Commissioner's failure to consider this provision and the previous court order directing reconsideration as crucial. It distinguished the Privy Council judgment, asserting the statute's provision for time extension, making the delay condonable. The court directed the authorities to permit the petitioner to file Form GST ITC-01, emphasizing the statutory power to condone delays and the need to adhere to court directions.

This detailed analysis covers the issues of delay in uploading the tax credit certificate, the condonation of delay, and the interpretation of relevant tax rules, providing a comprehensive understanding of the judgment's key aspects and legal reasoning.