2021 (5) TMI 363 - HC - GST

High Court extends GST TRAN-1 deadline, emphasizes compliance with statutory provisions

The High Court dismissed writ appeals by the Union of India, granting a 30-day extension for assessees to submit their GST TRAN-1 from the judgment date. ... TRAN-1 credit denied - permission to file revised Form GST TRAN-1 manually or otherwise to carry forward credit - HELD THAT:- Following the decision in the case of [2021 (3) TMI 953 - KARNATAKA HIGH COURT], the writ appeals preferred by the Union of India have been dismissed. However, as the period to file TRAN-1 has been expired on 30.08.2020, the respondents-assessees were granted time to file/revise TRAN-1 up to 31.03.2021, meaning thereby more than six month’s time was granted to the assessees therein. Resultantly, while dismissing the present writ appeal, 30 days time is granted to the assessees to submit their GST TRAN-1 from today - Appeal dismissed. Issues:Challenge to rejection of TRAN-1 credit availing request under GST law.Analysis:The judgment pertains to a writ appeal arising from an order rejecting a petitioner's request for availing TRAN-1 credit under GST law. The respondent challenged the rejection before the High Court, seeking permission to carry forward credit along with interest. The Division Bench referred to previous judgments, including those from Punjab and Haryana High Court, and emphasized the historical perspective of Rule 117 amendments regarding the submission of Form GST TRAN-1. The Court noted the extensions granted for filing TRAN-1, ultimately allowing assessees to file/revise TRAN-1 by 31.03.2021, with the revenue having the liberty to verify claims.In a specific case (Writ Appeal No.56 of 2020), the respondent had timely filed GST TRAN-1 but did not avail CENVAT credit, leading to a separate writ petition. The Court differentiated this case from belated filings, stating that no fresh opportunity could be given for filing TRAN-1. However, the relief granted to this respondent was similar to others, aiming to benefit from CENVAT credit under the previous tax regime. Consequently, the Court dismissed the writ appeals by the Union of India, granting a 30-day extension for assessees to submit their GST TRAN-1 from the judgment date.The judgment underscores the importance of adherence to statutory provisions and timelines for availing credits under GST law. It highlights the Court's approach to balancing assessees' rights with compliance requirements, emphasizing the need for genuine claims verification. The decision provides clarity on the extension of deadlines for filing/ revising Form GST TRAN-1, ensuring assessees have adequate time to fulfill their obligations. The Court's detailed analysis of past judgments and legislative amendments demonstrates a nuanced understanding of the legal framework governing credit availing processes under GST law.