2018 (10) TMI 199 - HC - GST

Judicial Intervention Permits Correction of Typographical Error in TRAN-1 Form, Acknowledging Administrative Flexibility for Cenvat Credit Reconciliation

HC allowed correction of a typographical error in Form TRAN-1 for Cenvat credit. The court recognized the potential for human error and suggested the ... Transitional declaration of unutilised Cenvat credit (Form TRAN-1) - rectification/correction of entries in statutory forms - remedy for human error in tax filings - power to remove difficulties in implementation under Section 172 of the ActTransitional declaration of unutilised Cenvat credit (Form TRAN-1) - rectification/correction of entries in statutory forms - power to remove difficulties in implementation under Section 172 of the Act - Whether the Central Government should be directed to provide a mechanism under Section 172 of the Act to permit correction of typographical/human errors in Form TRAN-1. - HELD THAT: - The Court recorded that the petitioners had inadvertently entered an incorrect figure in Form TRAN-1 when declaring unutilised Cenvat credit and that, on the record, there is no provision in the Act permitting correction or rectification of such errors. The Court noted that similar human errors are likely to occur in other cases and that their impact may advantage either the Revenue or the taxpayer. Attention was drawn to the statutory power to remove difficulties during implementation under Section 172 of the Act. In view of these conclusions, the Court considered it appropriate that the Central Government be invited to issue a general and/or special order under Section 172 addressing the issue of permitting corrections to TRAN-1 (either generally or on a special basis), taking into account practical realities. [Paras 3, 4, 5]The Court directed that the Central Government consider issuing a general and/or special order under Section 172 of the Act to address correction of typographical/human errors in Form TRAN-1, and the petition was adjourned for further consideration.Final Conclusion: The High Court declined to itself alter or permit resubmission of the TRAN-1 but invited the Central Government to issue an appropriate general or special order under Section 172 to deal with correction of clerical errors in TRAN-1; the petition was adjourned to 10 October 2018 for further proceedings. Issues involved:1. Correction of typographical error in Form TRAN-1 for Cenvat credit under the Central Goods and Services Tax Act, 2017.Analysis:The petition sought a direction for allowing the petitioners to resubmit Form TRAN-1 with the correct figure of Cenvat credit. The error occurred due to a typographical mistake where the credit available was wrongly indicated as Rs. 11,10,555 instead of Rs. 1,11,05,550. Despite the petitioner's efforts, the respondents refused to permit any amendment to the submitted form or accept a fresh one. The court acknowledged the possibility of human errors in such cases and highlighted the absence of a provision in the Act for correcting such mistakes, which could impact either the State or the Assessee.During the proceedings, Section 172 of the Act was referenced, which deals with the removal of difficulties arising during the Act's implementation. The court suggested that the Central Government should issue a general or special order under this section to address the issue at hand, considering the practical challenges faced. Consequently, the case was adjourned to allow the respondents to present their stance further on the matter.