2020 (3) TMI 350 - HC - GST

Kerala High Court Protects GST Rights: Allows Revised Filing & Credit Transfer

The Kerala High Court allowed the petition, quashed communications, and directed the respondents to permit manual or electronic filing of revised FORM GST ... Manual filing of revised FORM GST TRAN-1 and the resultant FORM GST TRAN-2 - direction for quashing Rule 120A of the CGST Rules to the extent it denies a registered person the right to revise the return under From GST TRAN-1 more than once - direction for quashing Exhibit P11 notification to the extent it denies registered persons who are affected but not identified, the benefit of the extended date for submitting FORM GST TRAN-1 and FORM GST TRAN-2 - HELD THAT:- It is ordered that in the light of the procedure recommendation made by the Commissioner of State GST Council, it is ordered that the review petitioner shall be permitted either to manually or electronically upload the revised form GST Tran-1 and Tran-2, expeditiously and without all delay, at any rate, on any day on or before 28.2.2020. Petition disposed off. Issues involved:1. Manual filing of revised FORM GST TRAN-1 and FORM GST TRAN-22. Reflection of eligible credit in electronic credit ledger3. Quashing Rule 120A of the CGST Rules4. Quashing Exhibit P11 notification5. Recommendations by the 3rd Respondent under Section 172Issue 1: Manual filing of revised FORM GST TRAN-1 and FORM GST TRAN-2The petitioner sought a writ of mandamus to direct the respondents to accept manual filing of revised FORM GST TRAN-1 and FORM GST TRAN-2 within a specified period. The court considered the petitioner's attempt to upload necessary details in the GSTN web portal, hindered by a technical glitch. Despite the respondents' denial based on procedural non-compliance, the court emphasized the substantive rights under the GST Act cannot be denied due to technical lapses. Citing precedents, the court allowed the petition, quashed the communications, and directed the respondents to permit manual or electronic filing of the forms by a specified date, ensuring verification of claims without denial based solely on filing date.Issue 2: Reflection of eligible credit in electronic credit ledgerThe court addressed the petitioner's entitlement to carry forward tax credits from the VAT regime to the GST regime under transition provisions. Despite system errors hindering timely filing, the court noted the petitioner's attempt to log in before the deadline. Relying on precedents emphasizing the protection of accrued tax credits despite procedural defects, the court allowed the petition, directing the respondents to permit filing of FORM GST TRAN-1 manually or electronically by a specified date, ensuring verification of claims without denial based solely on filing date.Issue 3: Quashing Rule 120A of the CGST RulesThe petitioner sought to quash Rule 120A of the CGST Rules to allow revision of returns under FORM GST TRAN-1 more than once. While the judgment did not address this specific issue, it highlighted the importance of protecting substantive rights under the GST Act and ensuring the transfer of accrued credits despite procedural challenges.Issue 4: Quashing Exhibit P11 notificationThe petitioner sought to quash Exhibit P11 notification denying registered persons the benefit of an extended date for submitting FORM GST TRAN-1 and FORM GST TRAN-2. While the judgment did not directly address this issue, it emphasized the court's intervention to protect substantive rights and facilitate the transfer of accrued credits despite technical or procedural challenges.Issue 5: Recommendations by the 3rd Respondent under Section 172The petitioner requested the 3rd Respondent to make necessary recommendations to the Government under Section 172. The judgment did not delve into the specifics of this issue but focused on ensuring the protection of substantive rights and facilitating the transfer of tax credits despite system errors or procedural challenges.This detailed analysis of the judgment from the Kerala High Court highlights the court's approach to addressing the issues raised by the petitioner regarding the manual filing of revised GST forms, reflection of eligible credits, and the quashing of certain rules and notifications, emphasizing the protection of substantive rights and the facilitation of credit transfers despite technical or procedural obstacles.