2019 (4) TMI 1245 - HC - GST

High Court directs GST Council to reconsider typographical error in Form TRAN-1

The Orissa High Court directed the GST Council to reconsider a petitioner's case involving a typographical error in Form TRAN-1 and subsequent attempts to ... Transitional input tax credit - FORM GST TRAN-1 - rectification of bona fide/typographical errors in TRAN-1 - portal/IT glitches and grievance redressal mechanism - remand to administrative authority for reconsideration - role of GST Council and nodal officersFORM GST TRAN-1 - transitional input tax credit - rectification of bona fide/typographical errors in TRAN-1 - portal/IT glitches and grievance redressal mechanism - role of GST Council and nodal officers - Whether the petitioner's claim for credit under TRAN-1, filed with an erroneous entry, should be finally adjudicated by this Court or remitted to the GST Council for reconsideration. - HELD THAT: - The petition raises a challenge to denial of credit claimed under the transitional mechanism due to an incorrect entry made in FORM GST TRAN-1. The Court noted authorities of several High Courts addressing analogous situations where taxpayers who attempted to file TRAN-1 but were impeded by portal errors or typographical mistakes were afforded relief or directed to seek remedy through the grievance redressal mechanism, nodal officers, or by administrative reconsideration. Rather than adjudicating the entitlement to transitional credit on merits, the Court found it appropriate to entrust reconsideration to the GST Council in view of the administrative framework established for resolving TRAN-1 grievances, the existence of circulars and nodal mechanisms, and the fact that similar cases have been addressed by other High Courts. The Court therefore refrained from determining substantive rights and remitted the matter for administrative reconsideration, directing the GST Council to reconsider the petitioner's case in light of the cited precedents and developments. [Paras 3, 4]Matter remitted to the GST Council for reconsideration of the petitioner's claim under FORM GST TRAN-1; writ petition disposed of accordingly.Final Conclusion: Writ petition disposed of by remitting the petitioner's claim to the GST Council for reconsideration of the TRAN-1 credit issue in light of the authorities and administrative grievance mechanisms; no adjudication on merits by this Court. Issues Involved:1. Non-credit of claimed GST due to form error.2. Petitioner's typographical error in Form TRAN-1.3. Administrative and technical responses to the petitioner's issue.4. Legal precedents from other High Courts regarding similar GST form errors.Detailed Analysis:1. Non-credit of claimed GST due to form error:The petitioner challenged the action of the opposite parties for not giving credit claimed under the new GST regime. The petitioner made an error in filling the form by entering details in '7d-Stock of goods' instead of '7a-Duties and Taxes on inputs.' Despite the incorrect entry, the Commissioner, GST & Central Excise, Bhubaneswar Commissionerate communicated the issue to the Directorate General of Systems & Data Management, recommending the revision of the form TRAN-1.2. Petitioner's typographical error in Form TRAN-1:The petitioner contended that the error was purely typographical and provided evidence of attempts to rectify the mistake before the deadline. The petitioner received various communications indicating the issue was recognized but unresolved due to the closure of the TRAN-1 window and lack of amendment options on the portal.3. Administrative and technical responses to the petitioner's issue:Several communications were made to GST authorities, including a letter from the Joint Director (GST) and an email from the Vice President-Finance, requesting resolution of the issue. The GST Helpdesk acknowledged the problem but cited the closure of the TRAN-1 window as a barrier to resolution.4. Legal precedents from other High Courts regarding similar GST form errors:The petitioner cited several High Court decisions to support their case:- High Court of Gujarat (Privi Organics India Ltd. Vs. Union of India): Recognized the need for further examination of typographical errors in TRAN-1 forms and suggested that such errors should fall within the extended time for declarations.- High Court of Madras-Madurai Bench (Tara Exports v. Union of India): Granted relief for genuine attempts to file TRAN-1, recognizing the procedural nature of deadlines and the importance of substantive input credits.- High Court of Kerala (Leena P. Nair v. GST Council, New Delhi): Directed the GST Network to provide facilities for completing TRAN-1 filings due to IT glitches.- High Court of Karnataka (M/s. Pragati Automotion Pvt. Ltd. v. The Union of India): Directed the Nodal Officer to consider complaints and facilitate the correction of errors in TRAN-1 forms.- High Court of Bombay (O/E/N India Ltd. & another v. Union of India): Allowed rectification of TRAN-1 forms after verifying the bona fides of claims.Conclusion:Taking into consideration the views of other High Courts, the Orissa High Court directed the GST Council to reconsider the petitioner's case, acknowledging the typographical error and subsequent attempts to rectify it. The matter was remitted back to the GST Council for reconsideration in light of the precedents and the extended time for filing corrections. The writ petition was disposed of accordingly.