2021 (3) TMI 791 - HC - GST

Court Orders Authorities to Allow Petitioner to Upload Form GST TRAN-1 Due to Technical Glitches and Compliance Efforts.

The HC allowed the writ petition, directing the authorities to enable the petitioner to upload Form GST TRAN-1 within a specified timeframe. The decision ... Claim under Section 140(3) of the CGST Act of transitional credit - Form GST TRAN-1 filing for transition credit - extension of time under Rule 117 for submission of TRAN-1 on account of technical difficulties - technical glitches on the common portal and facilitation by nodal officer - equitable relief for inability to upload due to portal failureClaim under Section 140(3) of the CGST Act of transitional credit - Form GST TRAN-1 filing for transition credit - technical glitches on the common portal and facilitation by nodal officer - extension of time under Rule 117 for submission of TRAN-1 on account of technical difficulties - Relief to facilitate filing of Form GST TRAN-1 where the assessee could not upload on account of technical difficulties and time extensions under Rule 117 - HELD THAT: - The petitioner migrated to the GST regime and sought to claim transitional input tax credit by filing Form GST TRAN-1. Rule 117 originally required electronic filing within a stipulated period which was subsequently extended (ultimately to 31.03.2020). The Court relied on the reasoning in an earlier writ (W.P.No.3328 of 2020) which held that an assessee who could not submit TRAN-1 due to portal technical difficulties is entitled to relief and that the requirement to pre collect evidence of portal glitches was not part of the original statutory scheme. The Division Bench had dismissed the departmental appeal against that reasoning. Applying those principles, the Court found that the petitioner had satisfactorily explained inability to upload and was entitled to have respondents facilitate the uploading of TRAN-1; accordingly the respondents were directed to enable submission by the petitioner within eight weeks. [Paras 7, 9]Respondents 2 and 3 directed to facilitate uploading of Form GST TRAN-1 for the petitioner within eight weeks; writ petition allowed.Final Conclusion: Writ petition allowed. Having found the petitioner entitled to relief for inability to upload Form GST TRAN-1 due to portal difficulties and in view of prior decisions upholding such relief, the Court directed the nodal officer and respondents to facilitate the electronic submission of TRAN-1 within eight weeks. Issues:1. Claiming credit under Section 140(3) of the CGST Act for inputs held in stock on the appointed day.2. Technical glitches preventing the filing of Form GST TRAN-1 within the stipulated period.3. Judicial interpretation of Rule 117 of CGST Rules, 2017 regarding the extension of the due date for filing the declaration electronically.4. Requirement for establishing technical difficulties and the impact on the transition of credit under GST regime.5. Precedents from other High Courts influencing the decision-making process.Issue 1: Claiming credit under Section 140(3) of the CGST Act for inputs held in stock on the appointed day.The petitioner, a registered dealer under the TNVAT Act, migrated to the GST regime and sought credit under Section 140(3) of the CGST Act for eligible duties on inputs held in stock as of 30.06.2017. The petitioner was required to submit Form GST TRAN-1 on the common portal within the specified timeline, which was extended multiple times, with the final date being 31.03.2020. The petitioner claimed technical glitches prevented timely filing and made efforts to submit the form manually and through representations. The Special Government Pleader contended that the petitioner missed the deadline, opposing any relief.Issue 2: Technical glitches preventing the filing of Form GST TRAN-1 within the stipulated period.The petitioner faced technical challenges in filing Form GST TRAN-1 due to glitches on the common portal. Despite personal visits to the office of the second respondent and submission of representations, the petitioner could not successfully upload the form within the extended deadline. The petitioner even provided evidence of attempts to upload the form. The court considered the impact of technical difficulties on the petitioner's ability to comply with the filing requirements.Issue 3: Judicial interpretation of Rule 117 of CGST Rules, 2017 regarding the extension of the due date for filing the declaration electronically.The court referred to a previous order in W.P.No.3328 of 2020, where it was noted that Rule 117 was amended to extend the due date for submitting the declaration electronically. The court highlighted the requirement for an assessee to establish technical difficulties, as mentioned in a circular, and the challenges faced by taxpayers in meeting such requirements. The court emphasized the need to differentiate between the transition of credit and its utilization, underscoring the importance of verification by an Assessing Officer.Issue 4: Requirement for establishing technical difficulties and the impact on the transition of credit under GST regime.The court acknowledged the challenges posed by Rule 117 in the GST regime, noting that transition alone does not confer rights on the assessee. The utilization of credit is contingent upon verification and assessment by the Assessing Officer. The court emphasized the need to understand the distinction between credit transition and its utilization post-verification, highlighting the significance of proper perspective in such matters.Issue 5: Precedents from other High Courts influencing the decision-making process.The court relied on precedents from other High Courts, including judgments from Punjab and Haryana High Court and Gujarat High Court, to support its decision. These cases provided guidance on similar issues related to technical glitches, extension of due dates, and the rights of taxpayers in claiming credit under the GST regime. The court's decision was influenced by the reasoning and outcomes of these previous judgments, reinforcing the petitioner's case for relief.In conclusion, the court allowed the writ petition, directing the concerned officers to facilitate the uploading of Form TRAN-1 by the petitioner within a specified timeframe. The decision was based on the petitioner's demonstrated efforts to comply with the requirements, the impact of technical glitches, and the interpretation of relevant provisions under the CGST Act and Rules.