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TMI Blog2019 (12) TMI 1269X X X X Extracts X X X X X X X X Extracts X X X X ..... t tax credit on various eligible goods under Section 140 of the Central Goods and Service Tax Act, 2017 (hereinafter referred as "CGST Act") read with Rule 117 of the Central Goods and Services Tax Rules, 2017 (hereinafter referred to as "CGST Rules"). Since the facts narrated in all the Petitions are similar and common grounds of challenge have been urged, it is considered appropriate to decide the same of by way of a common order. The factual matrix of WP(C) 2697/2018 is being averted to for the sake of convenience and disposal. 3. The petition [WP(C) 2697/2018] under Article 226 of the Constitution of India seeks the following reliefs: "(a) issue an appropriate writ, order or direction holding and declaring that the Impugned Conditions under Rule120A of the CGST Rules are liable to be struck down as ultra vires the CGST Act insofar as it restricts the power of revision of GST TRAN-1; (b) issue an appropriate writ, order or direction in the nature of mandamus directing the Respondent No. 3, in exercise of its powers under Rule 120A of the CGST Rules, to exercise its discretion vested in Rule 120A to extend the time period for submitting the revised declaration under Form GST ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uired to submit a declaration under Form GST TRAN-2 to avail Input Tax Credit. This understanding, according to the Petitioners, was based on the language used in Form GST TRAN-1 and TRAN-2 and the Frequently Asked Questions (FAQs) issued by the CBEC, including the description given at S. No. 4 in Form GST TRAN 2 which reads as "Details of inputs held on stock on appointed date in respect of which he is not in possession of any invoice/document evidencing payment of tax carried forward to Electronic Credit ledger". Therefore, with regard to the goods held in stock as on 01.07.2017, where the invoices / duty paying documents were available, the Petitioners claimed input tax credit under Form GST TRAN-l filed on 20.09.2017. However, when Petitioners attempted to submit a declaration under form GST TRAN-2 after 27.12.2017 in order to avail input tax credit of eligible duties in respect of goods where the invoices / duty paying documents were not available, the online GST portal displayed two (2) errors with the descriptions, namely, "You have not declared anything in part 7B of table 7(a) of TRAN-1, so you are not permitted to fill any details in table 4 of TRAN-2" and "You have not d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt evidencing payment of tax carried forward to Electronic Credit Ledger. In the said S. No.4 (unlike S. No. 7B of Form GST TRAN-1), there is no restriction specified as to with respect to whom the entry is applicable. 11. On 21.03.2018, this court directed the respondents to allow the petitioners to submit the particulars along with TRAN-2 application, either manually or through a separate enabling annexure for future use. The said order reads as under: "Issue notice. Mr. Sanjeev Narula, CGSC and Mr. Harpreet Singh, Sr. Standing Counsel accept notice on behalf of respondent Nos. 1 and 2 to 4, respectively. The petitioners' collective grievance is that the entitlement conferred by the combined effect of Rule 117(4)(a)(ii) of the Central Goods and Services Tax Rules, 2017 enabling them to claim 60% input tax credit, in respect of the goods, as dealers (having regard to the circumstances that there was no requirement under the Central Excise provisions previously) has been, in effect, negated and nullified on the part of the Revenue. They highlight that part 7B in TRAN-1 especially excludes its application to them whereas, TRAN2, when applied, was not accepted. Having regard t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7. Details of the inputs held in stock in terms of sections 140(3), 140(4)(b), 140(5) and 140(6). (a) Amount of duties and taxes on inputs claimed as credit excluding the credit claimed under Table 5 (a) (under sections 140(3), 140(6) and 140(7)) S.No. Details of inputs held in stock or inputs contained in semi-finished or finished goods held in stock HSN as applicable Unit Qty. Value Eligible Duties paid on such inputs 1 2 3 4 5 6 7A. Where duty paid invoices (including Credit Transfer Document (CTD)) are available Inputs Inputs contained in semi-finished and finished goods 7B Where duty paid invoices are not available (Applicable only for person other than manufacturer or service provider) - Credit in terms of Rule 117 (4) Inputs Form GST TRAN-2 at serial No. 4 clearly specified "Details of inputs held on stock on appointed date in respect of which he is not in possession of any invoice/document evidencing payment of tax carried forward to the Electronic Credit Ledger". The relevant clause of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntire taxation regime in the country. GST seeks to consolidate multiple taxes into one. GST legislations have incorporated transitional provisions to ensure that the transition to the GST regime is smooth and that the input tax credit/ benefits earned in the erstwhile taxation regime are not lost. Input tax credit is a property within the meaning of Article 300A of the Constitution of India. The taxpayers could not be deprived of the same, without authority of law. In terms of the transitional provisions, there was ambiguity and confusion amongst taxpayers. This was accentuated with technical glitches, which resulted in several tax payers not being able to file the requisite Form GST TRAN-1 within time. This was the precise reason the last date was extended from time to time. However, despite extension, several tax payers could not meet the extended deadline. This Court has, in a series of cases, allowed the petitions filed by such tax payers who could not file form GST TRAN-1 and were unable to take benefit of the transitional provisions with regard to the unutilized tax credit that they were not able to carry forward from the earlier regime to the present GST regime. We have give ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is a genuine one which should not preclude him from having its claim examined by the authorities in accordance with law. A direction is accordingly issued to the Respondents to either open the portal so as to enable the Petitioner to again file TRAN-1 electronically or to accept a manually filed TRAN-1 on or before 31st May, 2019. The Petitioner's claims will thereafter be processed in accordance with law." 12. In the present case, the Court is satisfied that, although the failure was on the part of the Petitioner to fill up the data concerning its stock in Column 7(d) of Form TRAN-1instead of Column 7(a), the error was inadvertent. The Respondents ought to have provided in the system itself a facility for rectification of such errors which are clearly bona fide. It should be noted at this stage that although the system provided for revision of a return, the deadline for making the revision coincided with the last date for filing the return i.e. 27th December, 2017. Thus, such facility was rendered impractical and meaningless." 17. The said decision has also been followed by us in M/s Aadinath Industries & Anr vs Union of India, W.P. (C) 9775/2019, decided on 20.09.2019; Lea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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