AI Drafter 
TaxTMI 
TaxTMI 
TaxTMI 
2020 (3) TMI 1087
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....ndent No.4 is the Goods and Services Tax Council. Respondent No.5 is an officer exercising powers under the Maharashtra Goods and Services Tax Act, 2017. Respondent No.6 is a company which operates the online portal known as GSTN. Respondent No.7 is the Assessing Officer having jurisdiction over the Petitioner. 3. The Goods and Services Act was brought into force from 1 July 2017. This tax replaced and subsumed various indirect taxes in India. For the transition between the old and new regimes, provisions have been made under the Act. Goods and Services Tax Act provides for utilization of Input Tax Credit accumulated under the earlier tax laws upon certain conditions. The Goods and Services Tax Rules framed under the Act provides for filing of a form known as GST TRAN-1 for availing of such input tax credit. The Rules provide for a time limit within which the TRAN-1 Form has to be filed. This time limit is the subject of debate in this Petition. 4. Goods and Service Tax is levied on the supply of goods and services. It is a destination-based consumption tax. The GST has introduced a unique concept where both, the Central and the State, levy taxes on a joint base. The GST levi....
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....hnical difficulties in filing the TRAN-1 Form. Further, under Rule 117(1A) time for filing TRAN-1 Form was extended till 31 January 2019 for persons facing technical difficulties. With further extensions now it is extended to 31 March 2020 for the persons specified in Rule 117(1A). 6. Reverting to the facts of this case. The Petitioner had accumulated CENVAT Credit during its activities and payment of taxes. According to the Petitioner, the Petitioner attempted to file TRAN-1 Form on 27 December 2017. However, it could not file the same, as according to the Petitioner, there were problems on the common portal run of Respondent No.6. It is the Petitioner's case that the Petitioner sent an e-mail to the official complaint portal of the Respondents for GST related issues, and the Petitioner received no response. Further, it is the case of the Petitioner that when the Petitioner tried again to file TRAN-1 Form on 28 December 2017, it did not permit an option for filing of the TRAN-1 Form. Another email was sent by the Petitioner on 12 January 2018 to resolve the technical difficulties but the Petitioner which received no response. It is the case of the Petitioner that the Deputy Com....
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....system log. 10. The Petitioner has filed an affidavit in rejoinder stating that the Petitioner made various follow-up attempt by forwarding scanned copies of the letter dated 23 April 2018 to the jurisdictional officer and met the officers to resolve the issue. The Petitioner has asserted in the rejoinder that the Petitioner encountered the technical difficulties in submitting TRAN-1 Form on 27 December 2017 due to technical difficulties on GSTN common portal. The Petitioner contends that once the Respondents admit there is an IT-related difficulty on the common portal, then it cannot ask the Petitioner to produce the proof thereof. 11. The Petitioner, by an additional affidavit dated 13 March 2019 has sought to produce a screenshot of the browsing history from the laptop of its officer to demonstrate that bonafide attempt was made to file the TRAN-1 Form. It is also stated that history was extracted in March 2019, and the extracted history may not contain full details. 12. We have heard Mr. V. Sridharan, learned Senior Advocate along with Mr. Prakash Shah and Mr. Sriram Sridharan, learned Advocates for the Petitioner and Mr. Anil Singh, the learned Additional Solicitor Ge....
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....fer rule-making power, specific phraseology is used. Therefore, whenever the legislature wanted to confer rule-making power to prescribe time limit, it has been specifically so prescribed. It is a uniform and settled legislative practice to use the phrase "prescribed manner" when the legislature does not intend to confer rule-making power to provide limitation. The rule-making power to prescribe time limit cannot be traced to general rule-making power under Section 164. Merely because the Rules have been placed before the Parliament does not cure the inherent lack of power. Section 140 prescribes a self-declaration to be confirmed later during the stipulated period and therefore, no prejudice to the Respondents. Rule 117 so far as it prescribes time limit to submit TRAN-1 Form cannot be traced either to Section 140 nor to Section 164 nor any other provision of the Act. Therefore, Rule 117, to the extent it provides a time limit, is ultra-vires of the parent statute. The input tax credit has always been a core feature of goods and services tax all over the world and denial of the input tax credit when the levy is imposed on output strikes at the core. Under the new GST law, every su....
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....Rule 117 deals with a tax or duty credit carried forward on the appointed date. Section 118 is regarding the person to whom Section 142(11)(c) applies. Rule 119 is regarding the declaration of stock. Rule 120 deals with details of goods sent on approval basis. Section 120A deals with revision of declaration of TRAN-1 Form. Section 121 is regarding recovery of credit wrongly availed. The part of Rule 117 relevant for this discussion is reproduced below: Rule 117: Tax or Duty Credit Carried Forward under any Existing Law or on Goods Held in Stock on the Appointed Day (Chapter-XIV: Transitional Provisions) (1) Every registered person entitled to take credit of input tax under section 140 shall, within ninety days of the appointed day, submit a declaration electronically in FORM GST TRAN-1, duly signed, on the common portal specifying therein, separately, the amount of input tax credit to which he is entitled under the provisions of the said section: Provided that the Commissioner may, on the recommendations of the Council, extend the period of ninety days by a further period not exceeding ninety days. * * * (1A) * * * (2) * * * ....
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.... eligible duties carried forward in the return relating to the period ending with the day immediately preceding the appointed day, furnished by him under the existing law in such manner as may be prescribed: Provided that the registered person shall not be allowed to take credit in the following circumstances, namely:- (i) where the said amount of credit is not admissible as input tax credit under this Act; or (ii) where he has not furnished all the returns required under the existing law for the period of six months immediately preceding the appointed date; or (iii) where the said amount of credit relates to goods manufactured and cleared under such exemption notifications as are notified by the Government. (2) A registered person, other than a person opting topay tax under section 10, shall be entitled to take, in his electronic credit ledger, credit of the unavailed CENVAT credit in respect of capital goods, not carried forward in a return, furnished under the existing law by him, for the period ending with the day immediately preceding the appointed day in such manner as may be prescribed: Provided that the registered person....
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....r as may be prescribed. (4) A registered person, who was engaged in the manufacture of taxable as well as exempted goods under the Central Excise Act, 1944 or provision of taxable as well as exempted services under Chapter V of the Finance Act, 1994, but which are liable to tax under this Act, shall be entitled to take, in his electronic credit ledger,- (a) the amount of CENVAT credit carried forward in a return furnished under the existing law by him in accordance with the provisions of sub-section (1); and (b) the amount of CENVAT credit of eligible duties in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the appointed day, relating to such exempted goods or services, in accordance with the provisions of subsection (3). (5) A registered person shall be entitled to take, in his electronic credit ledger, credit of eligible duties and taxes in respect of inputs or input services received on or after the appointed day but the duty or tax in respect of which has been paid by the supplier under the existing law, subject to the condition that the invoice or any other duty or tax paying document....
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....e appointed day within three months of the appointed day, such credit shall be allowed subject to the condition that the said return is either an original return or a revised return where the credit has been reduced from that claimed earlier: Provided further that the registered person shall not be allowed to take credit unless the said amount is admissible as input tax credit under this Act: Provided also that such credit may be transferred to any of the registered persons having the same Permanent Account Number for which the centralised registration was obtained under the existing law. (9) Where any CENVAT credit availed for the input services provided under the existing law has been reversed due to non-payment of the consideration within a period of three months, such credit can be reclaimed subject to the condition that the registered person has made the payment of the consideration for that supply of services within a period of three months from the appointed day. (10) The amount of credit under sub-sections (1), (3),(4) and (6) shall be calculated in such manner as may be prescribed. Explanation 1: For the purposes of sub-sections....
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....nsfer of credit under the pre- GST regime. Section 140(2) deals with transferring credit regarding Capital Goods. Credit of eligible duties on inputs or finished goods or semi-finished goods held in stock on the appointed day and transition is dealt with under Section 140(3) of the Act. Section 140(5) refers to transferring credit regarding inputs or input services in transit on the appointed day. Section 140 deals with transitional arrangement of input tax credit, and for the present topic, Section 140(1) 1 is material. 22. According to the Petitioner, section 140(1) confers right on a registered person to take CENVAT Credit of the eligible duties in its electronic trading ledger the to be carried forward and the said right can be regulated only in such manner as may be prescribed, and thus, regulated by framing Rules. The phrase as may be prescribed has been judicially construed as not to include within its ambit the prescription of limitation. On this proposition, reliance is placed on the decision of the Supreme Court in the case of Sales Tax Officer Ponkunnam and Anr. v/s. K.I. Abraham (1967) 3 SCR 518, Bharat Barrel and Drum Mfg. Co. Ltd. v. Employees State Insurance Corpo....
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....ent under s. 8(1) of the Act. The opposite view-point was put forward on behalf of the assessee and it was argued that the third proviso to Rule 6(1) was ultra vires of s. 8(4) read with s. 13(4)(e) of the Act. The decision of the question at issue therefore depends on the construction of the phrase "in the prescribed manner" in s. 8(4) read with s. 13 of the Act. In our opinion, the phrase "in the prescribed manner" occurring in s. 8(4) of the Act only confers power on the rule-making authority to prescribe a rule stating what particulars are to be mentioned in the prescribed form, the nature and value of the goods sold, the parties to whom they are sold, and to which authority the form is to be furnished. But the phrase "in the prescribed manner" in s. 8(4) does not take in the time-element. In other words, the section does not authorities the rule-making authority to prescribe a time-limit within which the declaration is to be filed by the registered dear. The view that we have taken is supported by the language of s. 13(4)(g) of the Act which states that the State Government may make rules for "the time within which, the manner in which and the authorities to whom any change in....
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....t was valid notwithstanding the failure to file the affidavit as required by section 1 of Stat. 3 G. 4 C. 39. The arguments was rejected and it was held by the Queen's Bench that the warrant of attorney and the judgment thereon were void as against the assignees in bankruptcy. In the course of his judgment, Lord Campbell C.J. observed as follows : "The enactment of stat. 12 & 13 Vict. C. 106, s. 136, is very plain; and I cannot agree to put a forced construction upon it. The Legislature has said there that any warrant of attorney given by a trader to confess judgment in a personal action, not filed within twenty-one days after execution in manner and form provided by star. 3. G 4. C. 39, shall be deemed fraudulent, null and void. the manner directed by that Act is filing the warrant or copy, with an affidavit of the time of execution. Here are a judgment and execution on a warrant of attorney given by a trader, and the warrant filed, but without an affidavit. The plain meaning of the late Act is that such a warrant shall be null and void against the assignees. The words 'in manner and form, 'refer only to the mode in which the thing is to be done, and do not in....
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....sed upon the distinctiveness of the Act and constitutional amendments governing it. With GST, a large number of Central and State taxes were subsumed in a single tax. The Constitution of India provides for segregation of fiscal powers between the Centre and the States essentially with no overlap. However, by the 100th Constitution Amendment Act, 2016, for the first time, both Centre and the States concurrently have the power to levy and collect GST. A mechanism for the joint operation of GST is evolved. Union levies CGST and the States levy SGST. The Parliament has exclusive power to levy IGST on interstate trade or commerce. The Goods and Service Tax Council has been established. For dealing with the IT system, Goods and Services Tax Network (GSTN) has been set up. The point to stress here is that with Goods and Services Tax, the indirect taxation regime in India has undergone a complete overhaul and it has brought about a unique amalgam of fiscal powers. 28. Another unique feature is the chapter XX of the Act, which incorporates Section 140. The Petitioner bases it's right to section 140. The heading of Chapter XX is 'Transitional provisions'. The heading of S.140 is &....
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....to be, or may be prescribed or in respect of which provisions are to be or may be made by rules. It is clear from reading Section 164(2), that the Government has the power to make rules not only for the matters already prescribed but those may be prescribed in future or in respect of which provisions are to be made by rules. Thus, section 164 governs the most comprehensive range of rule-making power. 32. The reason behind granting an extensive range of rule-making power under this Act is not difficult to comprehend. It is because of the nature of the legislation in question. GST has overhauled the existing multiple tax regimes into a single tax. This a first of its kind in the country. Since the system and the principles under it are new, quick adaption to the peculiar situations that may arise is crucial. It is necessary that the system is dynamic to keep pace with technological and commercial developments. It should be flexible to meet the emerging challenges to the revenue needs on an ongoing basis. It is for this flexibility that the legislature has conferred an extensive rule-making power. 33. The reason for alluding to the legislative backdrop and the language of sectio....
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....rom the prescribed authority; or (b) if the goods are sold to the Government, not being a registered dealer, a certificate in the prescribed form duly filled and signed by a duly authorised officer of the Government." Section 13 states : "(1) The Central Government may, by notification in the Official Gazette, make rules providing for (a) the manner in which applications for registration may be made under this Act, the particulars to be contained therein the procedure for the grant of such registration, the circumstance in which registration may be refused and the form in which the certificate of registration may be given : (b) the period of turnover, the manner in which the turnover in relation to the sale of any goods under this Act shall be determined, and the deductions which may be made in the process of such determination : (c) the cases and circumstances in which and the conditions subject to which any registration granted under this Act may be cancelled; (d) the form in which and the particulars to be contained in any declaration or certificate to be given under this Act; * * * (3) ....
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...., is also relevant to note. It is governed by Section 16(4) of the Act. Section 16(4) reads thus : "Section 16(4) :- A registered person shall not be entitled to take input tax credit in respect of any invoice or debit note for supply of goods or services or both after the due date of furnishing of the return under Section 39 for the month of September following the end of financial year to which such invoice or invoice relating to such debit note pertains or furnishing of the relevant annual return, whichever is earlier." Section 16(4) provides that a registered person shall not be entitled to take input tax credit regarding any invoice or debit note for supply of goods or services after the due date of furnishing of the return under section 39 for the month of September following the end of the financial year to which such invoice or invoice relating to such debit note pertains or furnishing of the relevant annual return, whichever is earlier. Section 16. Thus under the GST regime, also Input Tax Credit is not without time limit. Prescribing a time limit under the impugned Rule is not contrary to the object of the Act. 36. The respondents have, thus, rightly ....
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....164 of the Act. It observed thus: "25. Section 140 of the Act envisages certain benefits to be carried forward during the regime change. As is well-settled, the reduced rate of duty or concession in payment of duty are in the nature of an exemption and is always open for the Legislature to grant as well as to withdraw such exemption. As noted in case of Jayam & Co. [2016] 96 VST 1 (SC) : [2016] 15 SCC 125, the Supreme Court had observed that input-tax credit is a form of concession provided by the Legislature and can be made available subject to conditions. Likewise, in the case of Reliance Industries Limited [2018] 50 GSTR 14 (SC) : [2017] 16 SCC 28, it was held and observed that how much tax credit has to be given and under what circumstances is a domain of the Legislature. In the case of Godrej & Boyce Mfg. Co. Pvt. Ltd. [1992] 87 STC 186 (SC) : [1992] 3 SCC 624, the Supreme Court had upheld a rule which restricts availment of Modvat credit to six months from the date of issuance of the documents specified in the proviso. The contention that such amendment would take away an existing right was rejected. (Emphasis supplied) The Gujarat High Court held that th....
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....vice providers under the Firth proviso to sub-rule (7) of Rule 4 of the erstwhile CENVAT Credit Rules, 2004. It is also argued by Mr. Anil Singh that when in a Value Added Tax there was a restriction on availing of credit in law, now, there is a substantive provision in the new law. However, it is only the transitional provision which inserts or incorporates the above condition, as the Legislature deemed it fit and proper to enforce the new regime from 1-7-2017. When the new regime replaces a bundle of legislations seeking to tax the activity of manufacturers, sales and extension of service, then, it was deemed fit and proper that the transition to the new regime, from the old one, should be smooth. For it to be smooth and proper, a restriction has been placed on availment of CENVAT credit during the transitional period and by making the above statutory prescription. Mr. Anil Singh would submit that it is entirely for the Legislature to make such a provision and its power in that behalf is not questioned. If there is no challenge to the impugned condition on the ground of competence of the Legislature, then, the competent Legislature could have made a restrictive provision and whic....
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....riod or time provided therein. The period or the outer limit is prescribed in the existing law and the Rules of CENVAT credit enacted thereunder. In the circumstances, it is not possible to agree with the Counsel appearing for the petitioners that imposition of the condition vide Clause (iv) is arbitrary, unreasonable and violative of Articles 14 and 19(1)(g) of the Constitution of India. 57.We would refer to the Judgments which are heavily relied upon in this context. It is stated that the rights and privileges accrued during the existing law have been specifically saved under Section 174 of the CGST Act, 2017. If what are saved are the rights and privileges of the nature noted above, then it cannot be said de hors the conditions or de hors the restriction on availment or enjoyment of that right they have been saved by the CGST Act. In other words, if rights are conferred with conditions under the existing law, then, they are saved by the CGST Act with such conditions and not otherwise. There must be clear provision to grant it otherwise than in terms of the existing Law or in other words, the restrictions or conditions on availment of that right are removed totally. No s....
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....n another decision in the case of Jayam & Company (supra). Once again we must see what was dealt with in Jayam & Company. The argument before the Hon'ble Supreme Court in Jayam & Company was whether subsection (20) of Section 19 of the Tamil Nadu Value Added Tax Act, 2006 could be given retrospective effect. The appellants were dealers and registered as such under the provisions of the above VAT Act. They argued that they had dealt in electronic home appliances. They purchased them from local registered dealers on payment of VAT under the VAT invoice issued by the vendors. Thereafter, there was a resale to consumers under the VAT invoice charging appropriate VAT on their selling price. On resale, VAT is paid by the dealer. The dealer is entitled to avail input VAT credit and he is entitled to credit on VAT which was paid to the vendors on purchase of TV sets from the vendors. What had happened was, after the original tax invoice and availing the input tax credit, the vendor gave a discount and purchase credit note was issued for a lesser price. The dealer took into account the price which it had paid to the vendor after adjusting the discount that was subsequently given to the ....
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....concession, there would have been no concession at all. Thus, one cannot pick and choose a condition for challenge by alleging that the availment is undisputedly conditional but one of the conditions, though having nexus with the availment, is unconstitutional or arbitrary and excessive. The nature of that condition, its placement consistent with the scheme is then conveniently ignored. We cannot allow this argument to be built on the basis of reliance on para 18 of the Judgment in Jayam (supra). (emphasis supplied) The ratio laid down by the Division Bench in JCB India Ltd. interpreting the Transitional Provisions and distinguishing the other decisions, is unequivocal. 41. The Petitioner has sought to distinguish the decisions in Willowood and JCB India Ltd. contending that the Division Bench was not considering Section 140(1) and the right under different subsections of section 140 are different and operate in different fields and what is relevant for one class cannot be made applicable to another class. It is submitted that the decisions in JCB India Ltd. and Willowood have considered section 140(3) of the Act. We do not think these decisions can be distinguished ....
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....d that the GST Council recommendations are binding regarding the rule-making power. However, this argument overlooks that power under Section 164(2) is without prejudice to the power under Section 164(1) regarding the recommendation of the GST Council. 45. Second, that the same relief sought for by the Petitioner can be granted under section 54 of the Act and, therefore, necessary directions be issued. This argument is advanced for the first time across the bar with no pleadings or prayers. The Respondents had no opportunity to deal with the same. 46. Third, the scheme of the Act is that there is self-declaration which has to confirmed later and, therefore, there is no prejudice to the Respondents if credit is given now. It was contended that the submission of return under section 140 is subject to confirmation under the provisions governing Assessment. This submission is incorrect. Acceptance of Assessment is not subject to confirmation but being based on the principle of self-assessment, is open for verification; which is a different aspect. It is contended that claim of the input tax credit is in the Returns to be filed and Form is not important, and once this procedure is....
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....pugned legislation contending that without time limit, the concept of transitional provisions will become nugatory. 51. This analysis needs be prefixed by referring to the scope of judicial scrutiny in the matters of economic legislations. When economic legislation is questioned, the Courts are slow to strike down a provision which may lead to financial complications. The Supreme Court has sounded a note of caution in the cases of R.K Garg v/s. Union of India 1981(4) SCC 675, Bhavesh D. Parish v/s. Union of India 2000(5) SCC 471, Director General of Foreign Trade v/s. Kanak Exports 2016(2) SCC 226, Swiss Ribbons Pvt. Ltd. and Ors. vs. Union of India 2019(4) SCC 17. The summary of the principles laid down is as follows. Taxation issues are highly sensitive and complex. Legislations in the economic matters are based on experimentations. The Court should decide the constitutionality of such legislation by the generality of its provisions. The Court cannot assess or evaluate the impact of provision and whether it would serve the purpose in view or not. Trial and error method is inherent in the economic endeavours of the State. In matters of economic policy, the accepted principle is....
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....o allocate resources, it is necessary to know the amount of taxes available by a particular time. For an efficient administration of a tax system, certainty, especially in terms of time, is important. Calculations of the tax liability dictated by subjective conditions can lead to uncertainty. Such uncertainty makes it difficult to budget and ensure that funds are allocated where they are most required. The time limit for availing of input tax credit in the transitionary provisions is thus rooted in the larger public interest of having certainty in allocation and planning. The time limit under Rule 117 is thus not irrelevant. 54. Section 140 read with Rule 117 under Chapter XX deals with transitional provisions for availment of CENVAT credit. It permits availment of CENVAT credit, however within a stipulated transitional period. This availment is not absolute and is with a time limit. Upholding only the right to carry forward the credit and ignoring the time limit would make the transitional provision unworkable. The credit under the transitional provision is not a right to be exercised in perpetuity. By the very nature of the transitional provision, it has to be for a limited pe....
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....ndustries v. Union of India 2019-VIL-526-DEL, Adfert Technologies Pvt.Ltd. v. Union of India 2019-VIL-537-P&H Afran Technology Pvt.Ltd, Asiad Paints Ltd v. Union of India 2019-VIL-598 KAR, Gillette India Limited v. Union of India 2020-VIL-01-DEL, Jakap Metind Pvt.Ltd. v. Union of India 2019-VIL-556-GUJ, Jay Bee Industries v. M/s.J.B. Industries v. Union of India 201-VIL-570-HP, A.F. Babu v. Union of India 2019-VIL-610-KER, Tara Exports v. The Union of India 2019-VIL-432-MAD, Siddharth Enterprises v. The Nodal Officer 2019-VIL-442-GUJ, Ra Export Siddhartha Enterprise, Triveni Needdles Pvt. Ltd. v. Union of India 2019-VIL-618-DEL, Bhargava Motors v/s. Union of India & Ors. 2019-VIL-218-DEL WP(C) 1280/2018 dtd 13.05.2019, M/s. Blue Bird Pure Pvt. Ltd. v/s. Union of India 2019(7) TMI 1102 - 2019-VIL-347-DEL . The decision in the case of Adfert Technologies of the Division Bench of Punjab and Haryana High Court relied by the Petitioner was one wherein direction was issued to permit the revision of incorrect TRAN-1 Form and after noticing the decision of Gujarat High Court of Willowood, the Division Bench stated that they are not in agreement with the view taken. However, we do not find ....
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....e because it mandates electronic compliance, especially when the enactment in question is an intricate tax regime powered by a software-based system. 60. To summarize, therefore, the time limit stipulated under Rule 117 is neither unreasonable or arbitrary nor violative of Article 14. This rule is in accordance with the purpose laid down in the Act. 61. Now we turn to the third aspect of the matter that is the meaning of the phrase 'technical difficulties' under Rule 117A and the role of the IT Redressal Cell and whether by creating categories discretion is being fettered; To appreciate the Petitioners' challenge, the procedure to be followed while submitting Form TRAN-1 needs to be narrated. The Respondents have placed on record the procedure, which is: First, the taxpayer has to log in to the GST Portal. Then navigate to the TRAN-1 Form in Services Section. If the TRAN-1 is already submitted or filed, then a Reopen button is provided to the taxpayer to modify previously submitted/filed data or for adding missing records. Once the taxpayer clicks on the Reopen button, then the status of TRAN-1 is changed to Reopen. The taxpayer then fills up the respective sections of the TR....
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....tronically. It applies only to those registered persons who could not submit their declaration by the due date under Rule 117(1) because of technical difficulties. The technical difficulties have to be the ones referable to the common portal of GST, and last, it in whose cases the Council has made a recommendation for an extension. 64. In the GST Council Meeting held 10 March 2018, a grievance redressal mechanism was set up to address the issue. This mechanism was called IT Grievance Redressal Cell. The IT Grievance Redressal Cell consists of three members, namely - CEO (GSTN), DG (Systems) GBEC and a third member from any State nominated by Secretary. GST Council. GSTN, Central and State governments appointed nodal officers to address the problem a taxpayer faces due to the technical difficulties. 65. Details of the Grievance Redressal Mechanism is on record. An outline is: If the taxpayers encounter a technical difficulty regarding TRAN-1 Form, he has to apply to the Nodal officers. The technical difficulty relating to the Common Portal and not individual problems and local issues such as non-availability of internet connectivity, power failure or a problem of a specific sy....
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....technical difficulty' in Rule 117(1A) has to be broadly construed. It is not possible to do so. Rule 117(1A) refers to technical difficulties in online submission of TRAN-1 Form on the common portal. These technical difficulties are not the ones faced in general but on the common portal of the GST. The meaning of the phrase `technical difficulty' is, thus clear that is the technical difficulties are those which arise at the common portal of GST. 68. The IT Grievance Redressal Cell has taken the system log on the common portal as evidence of attempts made. There is no merit in the criticism of the Petitioner in taking system logs as a basis for determining technical difficulties. Since Rule 117(1A) refers only to the technical difficulties on the common portal, the record on the common portal would be a material piece of evidence. Since the phrase "technical difficulty" does not envisage any other difficulties, the IT Grievance Redressal Committee rightly evolved the criteria of system logs. The system log is an auto-generated data which records the activities performed. A system log maintained by the portal shows details of requests made at the page. This data is not manuall....
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....a registered user encountered difficulties while submitting forms on the common portal. It is only if the registered user encountered technical difficulties on the common portal, that Rule 117(1A) comes into play. 72. In some decisions referred to in para 57, the Courts have directed the Respondents to open the portal. It is observed therein that many of the registered persons come from a rural and semiliterate background and they may have no record, and they cannot be made to suffer when the systems of the Respondents were not efficient. This approach proceeds on the basis that once there is an acknowledgment of technical difficulties, a liberal view must be taken. However, though the Respondents have accepted there have been technical difficulties, they have not admitted a complete failure. A mechanism has been set up. A uniform and technically capable criteria to determine technical difficulties on the portal of system logs has been evolved. There is no allegation, nor there is any question of any personal malafides while ascertaining the system logs. The system logs are generated automatically and based on such system logs categorization has been made. 73. The input tax c....