Allahabad High Court Orders Reopening of GST TRAN-1 Portal for Petitioner

Case Name:

M/s. Chamunda Papers(P.) Ltd. Vs. Union of India

Writ Tax No. 944 of 2018

Key Takeaways:

- The court recognized technical glitches can prevent timely filing of GST TRAN-1 forms.

- Revenue authorities are directed to provide alternative means (manual filing) if electronic systems fail.

- The judgment emphasizes the importance of protecting taxpayers' rights to claim transitional credit.

Issue:

Should the petitioner be allowed to file their GST TRAN-1 form after the deadline due to technical issues with the electronic filing system?

Facts:

- The petitioner, M/S. CHAMUNDA PAPERS (P.) LTD., couldn't file their GST TRAN-1 form on the last date, December 27, 2017.

- The electronic system of the respondent (GST council) didn't respond despite several attempts by the petitioner.

- The petitioner risked losing their entitled credit due to the passage of time.

Arguments:

Petitioner's argument:

- They sought a writ of mandamus directing the GST council to recommend extending the filing period for GST TRAN-1.

- They argued that their application wasn't entertained on the last date due to technical issues.

- Respondent's arguments are not explicitly mentioned in the provided context.

Key Legal Precedents:

The judgment doesn't mention any specific legal precedents. However, it's worth noting that this case itself may become a precedent for similar situations in the future.

Judgement:

The Allahabad High Court directed the respondents to:

Reopen the portal within two weeks from the date of the order.

- If not reopened, entertain the petitioner's GST TRAN-1 manually.

- Verify the credits claimed by the petitioner.

- Allow the petitioner to pay taxes on the regular electronic system using the credit likely to be considered.

- The court also ordered the respondents to file a counter affidavit within a month and listed the matter for August 10, 2018.

FAQs:

Q1: What is GST TRAN-1?

A1: GST TRAN-1 is a form used to claim transitional credit when moving from the old tax regime to the GST system.

Q2: Why was this case significant?

A2: It highlighted the need for alternative measures when electronic systems fail, ensuring taxpayers don't lose their rights due to technical glitches.

Q3: Does this judgment apply to all taxpayers who missed the deadline?

A3: This specific judgment applies to the petitioner in this case. However, it may set a precedent for similar cases in the future.

Q4: What should taxpayers do if they face similar issues?

A4: If facing technical issues with GST portals, taxpayers should document their attempts to file and consider seeking legal advice if deadlines are missed due to system failures.

Heard Sri Suyash Agrawal, learned counsel for the petitioner, Shri Anant Kumar Tiwari, Advocate holding brief of Sri Gyan Prakash, ASGI appearing for the respondent nos.1, 2 & 3 and Shri R.C. Shukla, Advocate appears for the respondent nos.4 and 5.

The petitioner seeks a writ of mandamus directing the GST council respondent no.2 to make recommendations to the State Government to extend the time period for filing of GST Tran-1 in the case of the petitioner because his application was not entertained on the last date i.e. 27.12.2017 and he is permitted to file his complete GST TRAN-1 for the necessary transactional

credit.

The petitioner has alleged in the petition that despite making several efforts on the last date for filing of the application, the electronic system of the respondent no.2 did not respond, as a result of which the petitioner is likely to suffer loss of the credit that it is entitled to by passage of time.

In view of the above, the respondents are directed to reopen the portal within two weeks from today. In the event they do not do so, they will entertain the GST TRAN-1 of the petitioner manually and pass orders on it after due verification of the credits as claimed by the petitioner. They will also ensure that the petitioner is allowed to pay its taxes on the regular electronic system also which is being maintained for use of the

credit likely to be considered for the petitioner.

Learned Counsel for the respondents may file a counter affidavit within a month.

List this matter on 10th August, 2018.

Order Date :- 9.7.2018