2019 (10) TMI 91 - HC - GST

Petitioner Granted Relief to Correct GST Form for Input Tax Credit

The court directed the respondent to facilitate the filing of the corrected Form GST TRAN-1 by the petitioner to avail Input Tax Credit (ITC) within a ... Input Tax Credit - Form GST TRAN-1 - portal technical glitch - direction to reopen portal or accept manual filing - right to property under Article 300A - judicial precedent binding on similar factual matrixInput Tax Credit - Form GST TRAN-1 - portal technical glitch - direction to reopen portal or accept manual filing - judicial precedent binding on similar factual matrix - right to property under Article 300A - Petitioner entitled to an opportunity to file corrected TRAN-1 and consequent grant of Input Tax Credit where filing was prevented by technical errors on the GST portal. - HELD THAT: - The Court found that the petitioner attempted to file Form GST TRAN-1 within the prescribed timeline but was repeatedly prevented by an error on the GST common portal indicating an invalid registration number. The factual matrix was held to be squarely covered by earlier decisions in which petitioners were permitted either to re-file rectified TRAN-1 electronically or to have manually filed corrected TRAN-1 accepted. The Court additionally observed that the credit standing in favour of an assessee constitutes property and cannot be extinguished except by authority of law under Article 300A of the Constitution; no law was shown which extinguishes the assessee's right to such credit on account of portal glitches. In consequence, and following the precedents, the respondents were directed to either re-open the online portal to permit electronic filing of the rectified TRAN-1 or to accept the manually filed corrected TRAN-1, and thereafter to process the revised claim in accordance with law. The Court fixed a specific date by which this relief was to be granted and disposed of the petition accordingly. [Paras 8, 9, 10]Respondents directed to permit filing of rectified TRAN-1 (electronically or manually) and to process the petitioner's revised claim for Input Tax Credit in accordance with law by the date specified by the Court.Final Conclusion: Writ petition allowed; respondents to open the portal to enable electronic re-filing of TRAN-1 or accept a manually corrected TRAN-1 and to process the petitioner's claim for Input Tax Credit in accordance with law, the relief to be effected by the date fixed by the Court. Issues involved:1. Petitioner seeking directions to file Form GST TRAN-1 for availing Input Tax Credit (ITC).2. Technical glitches preventing the petitioner from filing Form GST TRAN-1.3. Dispute over granting Input Tax Credit to the petitioner.4. Application of legal precedent in similar cases.5. Constitutional right to property in credit standing.Detailed Analysis:Issue 1: The petitioner filed a writ petition seeking directions to allow them to file Form GST TRAN-1 for availing Input Tax Credit (ITC) and to receive the credit. The petitioner faced technical issues on the GST common portal while attempting to file the form, leading to errors and inability to complete the process.Issue 2: The petitioner's case involved encountering errors on the portal despite repeated attempts to file Form GST TRAN-1. The petitioner sought redressal for the technical glitches preventing them from availing the legitimate due Input Tax Credit of a specific amount.Issue 3: The petitioner argued that they should not be deprived of the Input Tax Credit amount due to technical glitches at the common portal. The petitioner emphasized their right to receive the credit and highlighted the efforts made to rectify the errors and file the form within the extended deadline.Issue 4: The petitioner relied on a previous judgment in a similar case, M/s Blue Bird Pure Pvt. Ltd. v. Union of India & Ors, where the court directed the respondents to allow the petitioner to rectify the form electronically or manually. The court emphasized the importance of granting the credit as property rights of the assessee.Issue 5: The court acknowledged the petitioner's right to property in the credit standing and directed the respondent to either open the online portal for rectification or accept the manually corrected form within a specified timeline. The court emphasized the need to process the revised claim in accordance with the law once the corrected form is filed, ensuring the petitioner receives the due credit.This judgment underscores the importance of upholding property rights in credit standing and ensuring that technical glitches do not deprive taxpayers of legitimate dues. The court's decision to direct the respondent to facilitate the filing of the corrected form reflects a commitment to fair and just administration in matters concerning Input Tax Credit under GST regulations.