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of <h1>Court orders electronic/manual filing relief for taxpayers challenging CGST Rules & Circular</h1> The court directed the respondents to open the portal for electronic/manual filing of TRAN-1, granting relief to the petitioner. The court allowed the ... Reopening of portal for filing of Form TRAN-1 - validity of Rules 117 to 120A of the CGST Rules, 2017 - HELD THAT:- Though, it is the case of the respondents that such a technical glitch/error cannot be considered as an error on the GST common portal, yet this Court in the case of SUPER INDIA PAPER PRODUCTS BENLON INDIA LTD., AND OTHERS VERSUS UNION OF INDIA THROUGH MINISTRY OF FINANCE, SECRETARY & ORS. UNION OF INDIA & ORS. COMMISSIONER, DELHI GOODS & SERVICES TAX & ANR. [2021 (6) TMI 108 - DELHI HIGH COURT] where it was held that In the opinion of this Court, a genuine mistake should not result in the Petitioners’ losing out on their accumulated credit which is protected by Article 300A of the Constitution. The lack of an effective revisional mechanism would leave the taxpayers remediless, which, to our minds, could not be the intention of the law, and moreover, no provision was brought to our notice which extinguishes the said right of the taxpayer. The present writ petition is allowed in accordance with paragraphs 28 and 29 of the judgment of this Court in Super India Paper Products. However, the date for accepting the TRAN-1 Form electronically or manually shall be read as 15th December, 2021. Petition allowed. Issues:1. Technical glitches/errors in filing TRAN-1.2. Legal validity of impugned Rules 117 to 120A of the CGST Rules, 2017.3. Legality of Circular No. 39/13/2018-GST dated 03.04.2018.Analysis:Issue 1: Technical glitches/errors in filing TRAN-1The petitioner filed a writ petition seeking directions to open the common portal for filing TRAN-1 electronically or allow manual filing to avail transitional credit. The petitioner faced technical glitches while filing TRAN-1 and filed complaint applications with the Nodal Officer and Chief Commissioner. The respondents contended that such glitches were not portal errors. However, the court referred to previous cases where taxpayers were allowed to file TRAN-1 despite lacking evidence due to system glitches. Noting the extension of the filing deadline, the court emphasized that taxpayers should not suffer due to system inefficiencies. The court directed the respondents to open the portal for electronic/manual filing of TRAN-1, granting relief to the petitioner.Issue 2: Legal validity of impugned Rules 117 to 120A of the CGST Rules, 2017The petitioner sought a declaration that Rules 117 to 120A of the CGST Rules, 2017 were ultra vires the CGST/SGST Acts and the Constitution. The court's decision in a previous case was cited, where relief was granted to taxpayers facing similar issues. The court highlighted that taxpayers should not be deprived of credit without legal authority. Consequently, the court allowed the petition and directed the respondents to enable the petitioner to file Form TRAN-1 electronically or manually, emphasizing the protection of the taxpayer's property rights.Issue 3: Legality of Circular No. 39/13/2018-GST dated 03.04.2018The petitioner challenged Circular No. 39/13/2018-GST as illegal, unconstitutional, and bad in law. The court's decision in previous cases was referenced, where relief was granted to taxpayers even without electronic records. The court emphasized that taxpayers without electronic records should not be denied benefits. As a result, the court allowed the petition, directing the respondents to facilitate electronic/manual filing of TRAN-1 and process the claims in accordance with the law. The judgment provided relief to the petitioner, aligning with previous decisions to protect taxpayers' rights and ensure justice.
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