Appellants allowed to rectify TRAN-1 filing error from Entry 7A to 7B for Rs. 46 lakh transitional credit claim

The HC allowed the appeal where appellants wrongfully credited Rs. 46,91,982 to CGST account due to technical error in filing TRAN-1 under Entry 7A instead of 7B. The court held that inadvertent technical errors during GST's nascent period (2017-2020) should not deny transitional credit. Following precedents from other HCs, the court directed authorities to allow appellants to rectify the mistake and file TRAN-1 under correct heading 7B within three weeks. The adjudicating authority must verify and extend transitional credit if admissible. The Nodal Officer was directed to facilitate electronic or manual rectification.

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Issues involved:
The appeal challenges the rejection of the writ petitioners' challenge to the adjudication order due to a technical error in filing the return under GST.

Details of the judgment:
1. The appellants, registered under the Value Added Tax Act and subsequently under the GST Act, mistakenly credited Rs. 46,91,982 to the CGST account while filing the return in TRAN-1.
2. Despite the appellants' request for guidance and submission of representations, no response was received from the assessing officer.
3. The adjudicating authority acknowledged the mistake but confirmed the demand, noting the failure of the department to advise the appellants on rectifying the error.
4. Citing precedents, the court highlighted the inadvertent nature of the error and directed the authorities to enable the appellants to rectify the mistake and submit the correct form within three weeks for verification and extension of transitional credit.
5. Directions were also issued to the Nodal Officer of IT Grievance Redressal Mechanism to facilitate the filing of necessary forms, electronically or manually if needed.

This judgment emphasizes the importance of rectifying technical errors in GST filings and ensuring that taxpayers are provided with necessary guidance and support in such situations.

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