Court directs petitioner to follow Grievance Redressal Mechanism for credit issue

The Court directed the petitioner to follow the Grievance Redressal Mechanism established by a circular to address their transitional credit issue, emphasizing timely submission for resolution through designated channels. The judgment did not express any view on the merits, providing specific directions for the petitioner to engage with the Nodal Officer within a specified timeline, ultimately disposing of the writ petition.

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Issues:
Claim for transitional credit under GST regime.

Analysis:
The petitioner sought a mandamus directing the respondents to allow them to avail the credit of approximately Rs. 36 lakh, which was the amount of Cenvat Credit carried forward in the return before the implementation of the Goods and Service Tax Act, 2017, as credit on input tax under the new tax regime. The petitioner contended that despite complying with the requirements for transition of credit on input tax, the unutilized amount failed to appear in the electronic credit. They had filled a declaration electronically in Form GST TRAN-I on 05.09.2017 and informed the respondents via email that the due credit had not been forwarded to the GST regime. The main grievance was that the transitional credit entitled to them as per the CGST Act, 2017 and TNGST Act, 2017 was not reflected in the electronic credit.

The Court noted that a circular had been issued by the Central Board of Indirect Taxes on 03.04.2018, establishing a Grievance Redressal Mechanism to address taxpayer grievances during the transitional period to GST. The mechanism included the appointment of a Nodal Officer to handle taxpayer issues on the GST portal. The Court directed the petitioner to submit their application following the circular to the respective Assessing Officer/Jurisdictional Officer/GST Officer within two weeks. Upon receipt, the Officer was instructed to forward the application to the Nodal Officer within one week. The Nodal Officer, in consultation with the GSTN, would review the grievances and forward them to the Grievance Committee for a decision within six weeks.

The Court disposed of the writ petition without expressing any view on the merits of the matter. The judgment provided specific directions for the petitioner to follow the Grievance Redressal Mechanism established by the circular dated 03.04.2018 to address their transitional credit issue. The Court emphasized the importance of the petitioner submitting their application within the stipulated timeline for further processing and resolution of the matter through the designated grievance redressal channels.

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