2019 (4) TMI 845 - HC - GST

Court orders assistance for GST TRAN-1 filing, allowing time, input tax credit claim, and prompt Nodal Officer response.

The Court directed the petitioner to apply to the Nodal Officer for assistance in uploading FORM GST TRAN-1, regardless of the timeframe, due to a system ... Technical glitch on GST Portal - IT Grievance Redressal Mechanism - input tax credit on migration - filing of FORM GST TRAN-1 - facilitation by Nodal Officer - disregard of statutory timeframe where failure due to portal errorTechnical glitch on GST Portal - filing of FORM GST TRAN-1 - facilitation by Nodal Officer - input tax credit on migration - Direction to permit a registered dealer who could not upload FORM GST TRAN-1 due to portal failure to apply to the Nodal Officer for facilitation and preservation of input tax credit. - HELD THAT: - The Court accepted that the petitioner and many others were prevented from uploading FORM GST TRAN-1 because of demonstrable technical glitches on the Common Portal and relied upon the Government of India circular establishing an IT Grievance Redressal Mechanism and the role of nodal officers to address such portal failures. Applying that framework, the Court granted relief by directing that the petitioner may apply to the Nodal Officer, who shall examine the application and facilitate uploading of FORM GST TRAN-1 without reference to the statutory timeframe. The Court imposed a practical timeline for processing (application within two weeks; nodal consideration within one week) but preserved substantive relief where uploading remains impossible for reasons not attributable to the petitioner, in which event the authority is directed to enable the petitioner to take credit of the input tax available at migration. [Paras 4]Petitioner permitted to apply to the Nodal Officer for facilitation of TRAN-1 upload; Nodal Officer to process and enable uploading without regard to the timeframe, and if uploading is impossible for reasons not attributable to the petitioner, the authority shall enable availment of input tax credit.Final Conclusion: Writ petition disposed by directing the petitioner to apply to the Nodal Officer for resolution under the IT Grievance Redressal Mechanism; the Nodal Officer to facilitate TRAN-1 upload disregarding the timeframe and, if upload cannot be effected for reasons beyond the petitioner's control, to enable the petitioner to claim the input tax credit available at migration. Issues:1. Failure to upload FORM GST TRAN-1 within stipulated time due to system error.2. Request for directions to enable taking credit of available input tax.3. Application of circular issued by the Government of India for addressing technical glitches on GST Portal.4. Previous instances of petitioners approaching the Court for similar issues.Analysis:1. The petitioner, a registered dealer under the Kerala Value Added Tax Act, migrated to the Goods and Services Tax regime. To utilize the input tax credit at the time of migration, FORM GST TRAN-1 had to be uploaded within the specified time. The petitioner claims a system error prevented timely uploading and seeks directions to avail the input tax credit. The Court considered the submissions of both parties and the record.2. A circular by the Government of India establishes an IT Grievance Redressal Mechanism for addressing taxpayer grievances due to technical glitches on the GST Portal. The circular outlines procedures for taxpayers to follow in case of glitches hindering compliance with legal processes on the Common Portal. This mechanism involves the appointment of nodal officers to address such issues and provide solutions for resolution.3. The Court notes that not only the petitioner but also others faced similar technical glitches and approached the Court previously. In previous instances, petitioners were permitted to apply to the additional sixth respondent for issue resolution. Therefore, in the current case, the petitioner is directed to apply to the Nodal Officer for assistance in uploading FORM GST TRAN-1, irrespective of the timeframe. The Nodal Officer is instructed to address the issue promptly upon application.4. The Court orders the petitioner to apply to the Nodal Officer, who will facilitate the uploading of FORM GST TRAN-1 without time constraints. If the uploading is hindered by reasons not attributed to the petitioner, the authority will enable the petitioner to claim the input tax credit available at the time of migration. The Court disposes of the Writ Petition with these directions, emphasizing prompt action by the Nodal Officer upon the petitioner's application.