2019 (10) TMI 477 - HC - GST

Petitioner Allowed to Submit Form GST TRAN-1 After Technical Issues During Original Filing Period.

The HC directed the respondents to allow the petitioner to submit Form GST TRAN-1 either electronically or manually by a specified deadline, following the ... Carry forward of input tax credit - Form GST TRAN-1 - technical glitches in GST portal - IT Grievance Redressal Committee - trial phase of GST implementation - reopening portal or manual acceptance of TRAN-1Form GST TRAN-1 - technical glitches in GST portal - trial phase of GST implementation - carry forward of input tax credit - Petitioner's entitlement to relief permitting filing of Form GST TRAN-1 after the statutory/computerised cut-off due to alleged technical glitches, in order to claim carry forward of input tax credit as on 30-06-2017. - HELD THAT: - The Court examined the competing contentions: the petitioner's plea that it could not file TRAN-1 electronically because of technical glitches and loss of its Accounts Officer, and the respondents' contention that the petitioner failed to produce contemporaneous evidence of attempts to file TRAN-1 before the last date and had not brought the matter to the department's notice in time. The Court noted precedents recognizing that the GST system was in a trial phase and that genuine inability to connect to the portal may justify relief. Applying that principle to the facts, the Court held that the petitioner's request merited consideration and that procedural relief should be afforded to enable adjudication of the substantive claim. The Court did not decide the merits of the carry forward claim itself but required the respondents to provide the petitioner an opportunity to file TRAN-1 (electronically or manually) so that the claim can be processed in accordance with law. The determinative legal reasoning is that where technical failures of the GST portal, in the trial stage of implementation, prevent electronic filing, equitable procedural relief (reopening portal or accepting manual filing) may be granted to permit adjudication of the substantive entitlement to input tax credit.Writ petition allowed insofar as respondents are directed to either reopen the portal to permit electronic filing of Form GST TRAN-1 or to accept a manually presented Form GST TRAN-1, if submitted on or before 31.08.2019, after which the petitioner's claim shall be processed in accordance with law.IT Grievance Redressal Committee - reopening portal or manual acceptance of TRAN-1 - Whether the respondents must process the petitioner's claim before the IT Grievance Redressal Committee or by the statutory mechanism after permitting filing. - HELD THAT: - The Court directed that once the petitioner is permitted to file TRAN-1 (electronically upon reopening of the portal or manually), the claim must thereafter be processed by the respondents in accordance with law. The order does not predetermine the outcome before the IT Grievance Redressal Committee or any other forum; it mandates the respondents to accept the filing opportunity and to consider the claim on merits and in strict conformity with applicable legal provisions and procedures.Respondents to process the petitioner's claim in accordance with law after acceptance of TRAN-1 filed pursuant to this order; no pre-judgment of merits is made.Final Conclusion: Writ petition disposed of by directing respondents to permit filing of Form GST TRAN-1 (electronically by reopening the portal or by accepting manual filing) on or before 31.08.2019, and thereafter to process the petitioner's claim for carry forward of input tax credit as on 30-06-2017 in accordance with law; no order as to costs. Issues:Challenging refusal to forward input tax credit carry forward request to IT Grievance Redressal Committee.Analysis:The writ petition sought a Writ of Mandamus to declare the proceedings of the 1st respondent as illegal and unconstitutional for refusing to forward the petitioner's request to carry forward input tax credit. The petitioner faced technical glitches while attempting online submission of Form GST TRAN-1. Despite submitting representations and letters, the petitioner's request was denied due to lack of evidence of being prevented from filing on time. The respondents argued that the petitioner failed to avail the extended filing deadline and did not make alternative arrangements. The main issue was whether the petitioner's request could be considered and if the respondents could be directed to reopen the portal for electronic filing or accept manual submission of Form GST TRAN-1.The petitioner claimed that technical issues hindered filing, while the respondents contended that the petitioner was negligent and did not provide evidence of attempting to file before the deadline. The court considered precedents where technical glitches prevented filing and held that expecting compliance in such situations was burdensome for taxpayers. Citing a Delhi High Court decision, the court found merit in the petitioner's request and directed the respondents to allow electronic or manual submission of Form GST TRAN-1 by a specified date.In conclusion, the court disposed of the Writ Petition by directing the respondents to facilitate electronic or manual submission of Form GST TRAN-1 by a specified deadline, emphasizing that the petitioner's claim should be processed in accordance with the law. No costs were awarded, and pending petitions were dismissed as a result of the judgment.