2018 (4) TMI 1215 - HC - GST

Taxpayers Win: GST Tran-1 Credit Filing Extended After Electronic System Failure Blocks Legitimate Claims

HC granted relief to petitioner challenging GST Tran-1 filing deadline due to electronic system failure. Court directed GST council to either reopen ... Extension of time period for filing of GST Tran-1 - despite making several efforts on the last date for filing of the application, the electronic system of the respondent no.2 did not respond - Held that: - the respondents are directed to reopen the portal within two weeks from today. In the event they do not do so, they will entertain the application of the petitioner manually and pass orders on it after due verification of the credits as claimed by the petitioner - petition disposed off. Issues:- Petition seeking writ of mandamus to direct GST council to extend time for filing GST Tran-1.- Allegation of electronic system failure on last date of filing application.- Request for reopening portal or manual application processing.Analysis:The petitioner approached the court seeking a writ of mandamus to compel the GST council to recommend to the State Government an extension of the time period for filing GST Tran-1 due to the petitioner's application not being entertained on the last date. The petitioner claimed to have filed a complete application for necessary transactional credit but faced non-responsiveness from the electronic system of the respondent no.2, potentially leading to loss of entitled credit. The court, in response, directed the respondents to either reopen the portal within two weeks or process the petitioner's application manually. The manual processing would involve verifying the credits claimed by the petitioner and ensuring the petitioner's ability to pay taxes using the regular electronic system for the credit likely to be considered.This judgment highlights the importance of timely and effective electronic systems in the context of tax filings, especially concerning transactional credits. The court's intervention in directing the reopening of the portal or manual processing demonstrates a commitment to ensuring that eligible individuals or entities do not suffer due to technical failures beyond their control. By issuing such directions, the court aims to safeguard the petitioner's rights and prevent any unjust loss of entitled credit. The decision ultimately aims to provide a fair and equitable resolution to the issue raised by the petitioner, balancing the need for compliance with tax requirements and the practical challenges faced in utilizing electronic systems effectively.