2020 (3) TMI 979 - HC - GST

Court orders verification of transitional credit claim due to technical glitches

Rohan Dyes & Intermediates Ltd. Versus Union of India

The Court directed the jurisdictional officer to verify the petitioner's claim for transitional credit under Section 140(1) of the Central Goods and ... Filing of Fomr GST TRAN-1 - transitional credit - transition to GST regime - HELD THAT:- It appears that if the petitioner could not upload the form GST TRAN-1 due to technical glitches and in spite of various representations made by the petitioner, he was not allowed to upload the form GST TRAN-1. In view of the settled legal position, the petitioner is entitled to claim credit of CENVAT as well as service tax as on 30th June 2017 as per the provisions under section 140(1) of the Act, 2017 read with Rule 117 of the Rules 2017. The respondent No. 4, who is the jurisdictional officer, is directed to verify the claim of credit of CENVAT and service tax of the petitioner so as to enable the petitioner to carry forward by filing/uploading form GST TRAN-1 on GST portal - respondent No. 4 shall complete the exercise of verification and permit the petitioner to upload the form GST TRAN-1 within a period of two seeks from the date of receipt of the writ of this order so that the petitioner can upload the form GST TRAN-1 on or before 31st March 2020. Petition disposed off. Issues:Claim for transitional credit under Section 140 of the Central Goods and Services Tax Act, 2017 due to technical glitches in uploading form GST TRAN-1.Analysis:The petitioner, a limited company registered under the Companies Act, 1956 and the Central Goods and Services Act, 2017, sought relief to claim transitional credit under Section 140 of the Act for excise duty and service tax amounts. The petitioner faced technical glitches preventing the upload of form GST TRAN-1, despite efforts to rectify the issue through the GST Department and Nodal Officer. The petitioner contended its entitlement to credit under Section 140(1) of the Act, 2017 read with Rule 117 of the Rules 2017. Citing a previous case, the petitioner argued for the right to carry forward CENVAT credit as a legitimate entitlement, crucial for business continuity and protected under Article 19(1)(g) of the Constitution of India.The petitioner emphasized the need for the respondents to consider its case, verify the credit availability as of 1st July 2017, and enable the upload of form GST TRAN-1 by the specified deadline. The respondents, represented by learned standing counsel, refuted technical glitches and assured verification of the petitioner's claim for transitional credit. Acknowledging the petitioner's inability to upload form GST TRAN-1 due to technical issues and the legal entitlement to claim credit under Section 140(1) of the Act, the Court directed the jurisdictional officer to verify the credit claims and facilitate the form's upload on the GST portal.Relying on the order No. 01/2020-GST dated 7th February 2020, extending the deadline for submitting declarations in form GST TRAN-1, the Court mandated respondent No. 4 to complete verification promptly. The Court instructed respondent No. 4 to allow the petitioner to upload form GST TRAN-1 within two weeks from the order's receipt, ensuring compliance with the extended deadline of 31st March 2020. With these directives, the petition was disposed of, and the rule was made absolute, permitting direct service.