Assessees with Technical Glitches in TRAN-1 Forms Can Claim Input Tax Credit Despite Procedural Issues

The HC disposed of multiple writ petitions challenging denial of input tax credit due to procedural issues in filing TRAN-1 forms during GST transition. The Court recognized that assessees faced technical glitches and connectivity problems, emphasizing that substantial compliance should prevail over procedural technicalities. Following precedents from other HCs, the Court ruled in favor of petitioners, allowing them to file individual tax credit claims in GSTR-3b forms for a specified period, subject to verification by GST authorities. The decision upholds assessees' vested rights to input credit despite transitional challenges.

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Issues Involved:
1. Similarity of issues in multiple writ petitions.
2. Denial of input credit due to procedural problems.
3. Examination of appropriateness of the order passed by the Single Judge.
4. Difficulty faced by assesses in transitioning to the GST regime.
5. Consideration of directions issued by the Single Judge.
6. Comparison with decisions from other High Courts.
7. Disposal of writ petitions with liberty to file tax credit in GSTR-3b forms.

Analysis:

1. The High Court heard and disposed of multiple writ petitions by a common order due to the similarity of issues involved. The petitions raised concerns similar to those addressed in previous judgments by the Division Bench and the Bombay High Court.

2. The key issue revolved around the denial of input credit to the writ petitioners despite their entitlement to it. The denial stemmed from procedural problems such as technical glitches, lack of sensitization with the system, connectivity issues, or failure to upload Form TRAN-1 in time or in the appropriate form.

3. The Court examined the appropriateness of the Single Judge's order in light of the assesses' crystallized right to input credit. It emphasized that assesses should not be prejudiced by procedural issues when they have substantially complied with legal requirements.

4. The Court acknowledged the challenges faced by assesses in transitioning to the GST regime and highlighted the importance of upholding their vested rights to input credit. It emphasized the need to consider the underlying principles and ensure assesses are not unduly disadvantaged by technicalities.

5. In considering the directions issued by the Single Judge, the Court leaned in favor of the writ petitioners. It affirmed the need to allow assesses to file or revise their TRAN-1 returns to claim input credit, emphasizing the importance of a practical and workable solution.

6. The Court referenced decisions from other High Courts, such as the Punjab and Haryana High Court, to support its reasoning. It highlighted the importance of providing an assessee-friendly approach in resolving issues related to input credit under the GST regime.

7. Ultimately, the Court disposed of all writ petitions by granting liberty to the petitioners to file individual tax credit in GSTR-3b forms for a specific period, subject to verification by the concerned GST authorities. The decision aimed to ensure that genuine claims of the petitioners were considered and allowed based on the precedents set by previous judgments.

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