2018 (10) TMI 1240 - HC - GST

Petitioners Win Right to Seek GST Council Recommendation for TRAN-1 Filing Despite Technical Challenges and Previous Rejection

HC allowed petitioners to seek GST Council recommendation for FORM GST TRAN-1 submission, setting aside the Joint Commissioner's order rejecting their ... Validity of order - rejection of petitioners’ request to receive their return in FORM GST TRAN-1 which would enable them to claim input tax credit for the tax paid prior to the introduction of GST - Held that:- The petitioners claim that their representation dated 14.03.2018, made by them to the GST Council, is still pending consideration of the Council. It is wholly unnecessary for us to examine whether or not the inability of the petitioners to submit their return, in FORM GST TRAN-1 by 27.12.2017, was on account of technical glitches or a server error or any such other difficulties, as these are all matters for the 3rd respondent to examine. The impugned order dated 27.06.2018 does not deal with the petitioners’ claim of inability to file their return in FORM GST TRAN-1 on 27.12.2017 because of server error; and, instead, relies on general statistics to justify rejection of the petitioners’ claim to have made attempts to file FORM GST TRAN-1 on 27.12.2017. Since the petitioners are entitled to have their case considered in accordance with law, and in terms of the notifications dated 10.09.2018 and the order dated 17.09.2018, the impugned order dated 27.06.2018 is set aside - petition disposed off. Issues:Validity of order rejecting request to receive return in FORM GST TRAN-1 for claiming input tax credit pre-GST introduction.Analysis:The judgment dealt with two writ petitions challenging the order of the Joint Commissioner rejecting the petitioners' request to receive their return in FORM GST TRAN-1 to claim input tax credit for tax paid before the GST introduction. The Government extended the deadline for submitting declarations in FORM GST TRAN-1 till 27.12.2017. The dispute arose regarding whether the petitioners attempted to file their return by the deadline. The petitioners claimed they tried on 27.12.2017, while the Standing Counsel argued they admitted to attempting it on 28.12.2017. The Joint Commissioner did not examine this aspect in the impugned order.The Joint Commissioner rejected the plea of server error/technical difficulties for not filing FORM GST TRAN-1 on time. The Department later amended Rule 117 of CGST Rules, allowing an extension for submitting the declaration electronically in FORM GST TRAN-1 until 31.03.2019 for those facing technical issues. The Commissioner issued an order extending the deadline to 31.01.2019 for specific cases recommended by the Council. The petitioners' representation to the GST Council was pending consideration.The Court set aside the impugned order, stating that the petitioners should have their case considered in accordance with the law and the notifications issued. They were allowed to seek the GST Council's recommendation for submitting FORM GST TRAN-1 within the specified timeframe and prove the technical difficulties faced while filing on 27.12.2017. The Court disposed of both writ petitions, with no costs imposed.In conclusion, the judgment focused on the validity of the order rejecting the petitioners' request to receive their return in FORM GST TRAN-1 for claiming input tax credit pre-GST introduction. It highlighted the importance of considering technical difficulties faced by taxpayers and the subsequent amendments allowing extensions for submission. The Court emphasized the need for proper examination of claims and compliance with the law and notifications.