2019 (9) TMI 1044 - HC - GST

Rectification granted for GST Form error, protecting property rights, enabling timely claim processing

The court granted the petitioner's request for rectification of the GST TRAN-I Form due to an inadvertent error, emphasizing the protection of property ... Directions to enable rectification of TRAN-I - input tax credit as property - right to property under Article 300A - requirement to process revised TRAN-I and allow subsequent TRAN-2 filingDirections to enable rectification of TRAN-I - requirement to process revised TRAN-I and allow subsequent TRAN-2 filing - Petitioner permitted to rectify TRAN-I by electronic re-filing or manual submission with corrections and have the revised claim processed. - HELD THAT: - The petitioner had filed TRAN-I within the prescribed cut-off but, due to an inadvertent error, claimed a lesser amount of input tax credit and sought opportunity to amend the TRAN-I by corresponding with the GST Help Desk. This Court has previously granted identical relief in M/s Blue Bird Pure Pvt. Ltd. (supra) where the portal was directed to be opened or manual rectified TRAN-I accepted, with consequential permission to file TRAN-2 and processing of claims. The respondents did not dispute that the present case is covered by that decision. Noting that the credit standing in favour of an assessee constitutes a proprietary right which cannot be extinguished except by law, the Court directed respondents to either open the online portal to permit electronic re-filing of the rectified TRAN-I or accept the manually corrected TRAN-I, and to process the revised claim in accordance with law once filed.Respondents directed to open the portal or accept manual rectified TRAN-I by 20.09.2019 and to process the petitioner's revised claim in accordance with law.Input tax credit as property - right to property under Article 300A - Input tax credit standing in favour of an assessee is a proprietary right protected under Article 300A and cannot be extinguished save by authority of law. - HELD THAT: - The Court observed that the credit standing in favour of an assessee is property and that the assessee cannot be deprived of that property except by authority of law under Article 300A of the Constitution. No statute was shown to extinguish the assessee's right to the credit in the facts before the Court, supporting the grant of remedial directions to enable rectification of TRAN-I so that the proprietary right in the credit may be protected and adjudicated in accordance with law.Input tax credit recognised as a proprietary right; absence of law extinguishing that right justified directing remedial measures to enable correction of TRAN-I.Final Conclusion: Writ petition disposed of by directing respondents to permit rectification of TRAN-I-either by opening the online portal for electronic re-filing or by accepting a manually corrected TRAN-I-further directing that the petitioner's revised claim be processed in accordance with law; Court recognised input tax credit as a proprietary right protected under Article 300A. Issues Involved:Petitioner's request for amendment of GST TRAN-I Form due to inadvertent error.Analysis:The petitioner filed a petition seeking directions to rectify an error in the GST TRAN-I Form. The petitioner claimed that despite filing the form before the cut-off date, an inadvertent mistake led to a lower claim for Input Tax Credit (ITC). The petitioner requested an opportunity to correct the error, but the request was not addressed. The court referred to a similar case, M/s Blue Bird Pure Pvt. Ltd., where the court allowed rectification of the form. The court emphasized that the credit standing in favor of an assessee is a property right protected under Article 300 (A) of the Constitution of India. The court directed the respondent to enable the petitioner to rectify the form electronically or manually by a specified date.The court's decision in M/s Blue Bird Pure Pvt. Ltd. set a precedent for allowing rectification of errors in the GST TRAN-I Form. The court highlighted the importance of protecting the property rights of the assessee in the form of credit standing. The court directed the respondent to facilitate the rectification process for the petitioner, either electronically or manually, within a specified timeframe. The court emphasized that the corrected claim should be processed in accordance with the law once the rectified form is filed.In conclusion, the court granted the petitioner's request for rectification of the GST TRAN-I Form due to an inadvertent error. The court emphasized the importance of protecting the property rights of the assessee in the form of credit standing. The court directed the respondent to enable the petitioner to rectify the form either electronically or manually by a specified date. Once the corrected form is filed, the petitioner's revised claim is to be processed in accordance with the law. The petition was disposed of based on the aforementioned terms.