High Court directs comprehensive review of GST claims, sets 60-day deadline for decision-making

The High Court remitted the case back to the Commissioner for reconsideration, directing a thorough review of the petitioner's claims regarding technical glitches in submitting GST TRAN-1 and TRAN-2 returns. The Court emphasized the need for prompt decision-making, suggesting a timeframe of 60 days for the Commissioner to reach a conclusion. Additionally, the Court highlighted the authority of the GST Council to extend submission deadlines under Section 117(1)A of the GST Law, advising the Commissioner to involve the Council if necessary for timely resolution.

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Issues:
1. Unable to upload GST TRAN-1 and TRAN-2 returns on the GST web portal by the last date prescribed.

Analysis:
The petitioner faced technical glitches preventing the submission of GST TRAN-1 and TRAN-2 returns by the deadline of 27.12.2017. Despite immediate reporting of the issue to the authorities and various attempts to submit the returns manually and by post, permission was refused by the Commissioner on 14.09.2018, citing lack of evidence of timely submission. The petitioner challenged this decision in a writ petition.

2. Refusal of permission to submit TRAN-1 and TRAN-2 returns.
The Commissioner's rejection was contested by the petitioner, claiming it was erroneous and perverse, lacking proper verification. Reference was made to judgments from the Madras High Court and Punjab & Haryana High Court where similar circumstances led to granting permission to submit the returns. The High Court noted that the Commissioner's decision seemed incorrect based on the documents provided by the petitioner.

3. Consideration of petitioner's contentions and submissions.
The High Court emphasized that the authorities should have considered the petitioner's complaints of technical glitches and efforts to submit the returns before the deadline. Referring to previous judgments, the court opined that the Commissioner's order needed reconsideration due to the failure to address the petitioner's submissions adequately.

4. Remittal of the matter for reconsideration.
The High Court remitted the case back to the Commissioner for a fresh decision, directing a thorough reconsideration of the petitioner's claims and documents. The Commissioner was instructed to keep in mind the evidence presented by the petitioner regarding the technical issues faced and the attempts made to submit the returns manually and by post.

5. Empowerment of the GST Council to extend submission dates.
Under Section 117(1)A of the GST Law, the GST Council can extend submission deadlines for those facing technical difficulties. The High Court advised the Commissioner to refer the matter to the GST Council if necessary, emphasizing the importance of timely resolution given the petitioner's prompt pursuit of the claim.

6. Timely decision-making and expected timeframes.
Considering the time consumed in litigation, the High Court urged the Commissioner to make a decision promptly, ideally within 60 days of receiving the order. If a reference to the GST Council is made, the Council was expected to respond within 90 days of receiving the referral, ensuring a swift resolution to the matter.

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