Assessees granted liberty to file individual tax credit in GSTR-3B forms despite TRAN-I filing difficulties

The HC disposed of appeals concerning GST TRAN-I form filing, following precedent from a previous case involving similar circumstances. The court recognized difficulties faced by assessees in transitioning to GST regime and held that technical issues beyond assessees' control should not prejudice their legitimate tax credit claims. The HC modified the single bench order, granting liberty to respondent assessees to file individual tax credit in GSTR-3B forms for April 2022 during May 2022, while allowing authorities to verify claim genuineness and proceed according to law.

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Issues:
1. Interpretation of the order allowing writ petitioners to file/upload in GST TRAN-I form.
2. Challenge by the department of CGST and Central Excise against the direction to open the portal.
3. Comparison with judgments from other High Courts regarding similar issues.
4. Examination of difficulties faced by assesses in transitioning to the GST regime.
5. Decision on modifying the direction to open the portal for filing tax credit forms.
6. Granting liberty to file individual tax credit in GSTR-3B Forms.

Issue 1 - Interpretation of the order allowing writ petitioners to file/upload in GST TRAN-I form:
The High Court considered an intra Court appeal by the department of CGST and Central Excise against an order allowing writ petitioners to file/upload in GST TRAN-I form. The Single Bench directed the authorities to open the portal for the writ petitioners to file TRAN-I form or revised TRAN-I form. The revenue appealed against this direction.

Issue 2 - Challenge by the department of CGST and Central Excise against the direction to open the portal:
The department challenged the direction to open the portal for filing tax credit forms. The High Court noted similar challenges in other cases, including a judgment by the High Court of Madras. The Court considered the doctrine of substantial compliance and the difficulties faced by assesses in transitioning to the GST regime.

Issue 3 - Comparison with judgments from other High Courts regarding similar issues:
The High Court compared its decision with judgments from other High Courts, such as the High Court of Allahabad and the High Court of Punjab and Haryana. These judgments highlighted technical difficulties in the GST portal and the need to facilitate assesses in filing tax credit forms.

Issue 4 - Examination of difficulties faced by assesses in transitioning to the GST regime:
The Court acknowledged the difficulties faced by assesses in transitioning to the GST regime and the importance of substantial compliance with the law. Assessing Officers were directed to verify the genuineness of claims while considering the challenges faced by assesses.

Issue 5 - Decision on modifying the direction to open the portal for filing tax credit forms:
The High Court decided to modify the direction to open the portal for filing tax credit forms. Instead, the Court followed the approach taken by the High Court of Punjab and Haryana, allowing assesses to make unutilized credit claims in their GSTR-3B Forms on a monthly basis.

Issue 6 - Granting liberty to file individual tax credit in GSTR-3B Forms:
The High Court granted liberty to the respondents/assessees to file individual tax credit in GSTR-3B Forms for specific months, with the authorities/Assessing Officer being authorized to verify the genuineness of the claims and proceed in accordance with the law.

In conclusion, the High Court's judgment addressed various issues related to filing tax credit forms under the GST regime, considering the challenges faced by assesses and the need for a practical and workable solution to verify and process claims.

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