2023 (9) TMI 395 - HC - GST

GST Dispute: Technical Portal Issues Halt Input Tax Credit Claim, Court Allows Firm to Upload ITC-01 FORM Under Section 18(1)(c)

HC addressed a GST dispute involving a firm's conversion from Composition Scheme to normal scheme. Technical portal glitches prevented timely filing of ... Migration from Composition Scheme to regular scheme of GST payment - Permission to petitioner to file ITC-01 FORM to avail its eligible ITC or input lying on the stock as on date - direction to condone the delay - HELD THAT:- Reliance placed upon two decisions of the Gujarat High Court in M/s Pradip Chemanlal Mevada vs. Union of India [2020 (1) TMI 1169 - GUJARAT HIGH COURT] and Ezzy Electricals Vs. State of Gujarat [2022 (2) TMI 946 - GUJARAT HIGH COURT] wherein the petitions were disposed of by directing the respondents to do the needful and see to it that the petitioner is able to claim the Input Tax Credit by uploading the Form ITC-01. The case of the petitioner is on the same footing as the petitioners before the Gujarat High Court - the petitioner is equally circumstanced and is entitled to the relief as has been granted by the Gujarat High Court to the petitioners before it particularly in view of the fact that no contrary case law has been cited by the counsel for the respondents. The writ petition is disposed of by directing the respondents to do the needful and ensure that the writ petitioner is permitted to upload the Form ITC-01 so as to enable him to claim the Input Tax Credit worth Rs. 31,18,718/- as stated in para 13 of the writ petition) under Section 18 (1) (c) of the Act. Issues: The issues involved in the judgment are the delay in filing ITC-01 FORM, entitlement to claim Input Tax Credit, and the relief sought by the petitioner.Delay in Filing ITC-01 FORM: The petitioner, a Proprietorship Firm registered under the Goods and Service Tax Act, converted from the Composition Scheme to the normal scheme due to increased turnover. The petitioner sought to avail Input Tax Credit (ITC) for stock of inputs in the form of semi-finished/finished goods and Capital goods held on the date of conversion. However, technical glitches on the GST Portal prevented the petitioner from filing the ITC-01 FORM within the stipulated time frame.Entitlement to Claim Input Tax Credit: The petitioner complied with the provisions of the SGST Rules and prepared a summary of eligible ITC on the stock. Despite approaching the authorities for grant of the benefit, no action was taken, possibly due to the delay attributed to the petitioner. The petitioner argued for entitlement to the ITC based on Section 18 (1) (c) of the SGST Act, 2017, citing similar relief granted by the Gujarat High Court in comparable cases.Relief Sought by the Petitioner: The petitioner filed a writ petition seeking a writ of Mandamus to command the respondent authorities to condone the delay and allow the filing of ITC-01 FORM to claim the eligible ITC. Additionally, the petitioner requested a directive for the respondent to decide on the representation within a fixed time frame. The respondent, while acknowledging the delay caused by the petitioner, did not dispute the relief granted by the Gujarat High Court in similar circumstances.Judgment: After hearing both parties and considering the case laws cited, the Court found the petitioner's situation akin to those before the Gujarat High Court and granted the relief sought. The Court directed the respondents to permit the petitioner to upload the Form ITC-01 to claim the Input Tax Credit amounting to Rs. 31,18,718 under Section 18 (1) (c) of the Act. The respondents were instructed to complete the process within four weeks from the date of service of the order.