Court Directs GST Portal Reopening for Missed TRAN-1 Filing Due to Technical Glitch

Case Name:

M/S. Rasik Products (P.) Ltd. vs. Union of India

Writ Tax No. 131 of 2018

Key Takeaways:

- Technical glitches shouldn't prevent taxpayers from claiming their rightful input tax credit.

- Courts may intervene to ensure fair treatment in GST transitional credit claims.

- Revenue authorities may be directed to accept manual submissions in case of technical failures.

- The judgment emphasizes the importance of allowing taxpayers to utilize their legitimate tax credits.

Issue:

Can an assessee be allowed to file FORM GST TRAN-1 manually or through a reopened portal when they failed to file it electronically due to technical errors on the last day of submission?

Facts:

- The assessee, M/S. Rasik Products (P.) Ltd., attempted to file their GST TRAN-1 form on December 27, 2017, which was the last date for submission.

- Due to technical issues, the electronic system of the respondent (GST council) did not respond, preventing the assessee from filing the form.

- The assessee filed a writ petition seeking direction for the revenue department to accept a manual filing of the revised FORM GST TRAN-1.

- The petitioner argued that they might lose their entitled credit due to the passage of time if not allowed to file.(Where Assessee Failed to File FORM GST TRAN-I Electronically Due to Te, n.d.)

Arguments:

Petitioner's Argument:

- The assessee made several efforts to file the application on the last date.

- The electronic system's failure to respond could result in a loss of entitled credit.

- They sought a writ of mandamus directing the GST council to recommend an extension of the filing period to the State Government.

Respondent's Argument:

The judgment doesn't explicitly mention the respondent's arguments.

Key Legal Precedents:

The judgment doesn't mention any specific legal precedents.

Judgement:

The court ruled in favor of the assessee and issued the following directions:

- The respondents were directed to reopen the portal within two weeks from the date of the order.

- If the portal is not reopened, they must accept the assessee's application manually.

- The authorities must verify the credits claimed by the assessee.

- The assessee should be allowed to pay taxes on the regular electronic system, considering the credit likely to be allowed.

- The writ petition was disposed of with these directions.

FAQs:

Q1: What happens if the GST portal isn't reopened within the stipulated time?

A1: The authorities must accept the FORM GST TRAN-1 manually from the assessee.

Q2: Will the manually submitted form be considered valid?

A2: Yes, the authorities are directed to process the manual submission and transmit it into the electronic credit ledger of the assessee.

Q3: Does this judgment apply to all cases of technical glitches in GST filing?

A3: While this judgment is specific to this case, it may set a precedent for similar situations where technical issues prevent timely filing.

Q4: What's the significance of allowing the assessee to pay taxes on the regular electronic system?

A4: This ensures that the assessee can utilize the credit that's likely to be considered, preventing any financial disadvantage due to the delayed processing of their TRAN-1 form.

Q5: Does this judgment guarantee that the assessee will receive all claimed credits?

A5: No, the judgment directs the authorities to verify the credits claimed by the assessee before allowing them.

Heard Sri Suyash Agrawal, learned counsel for the petitioner, Shri Anant Kr. Tiwari, learned counsel for the respondent nos.1 and 2 and Shri Piyush Agrawal, learned counsel for the respondent nos.3 to 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 has filed his complete application 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 application 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.

With the aforesaid directions, the writ petition stand disposed of finally.

Order Date : 5.2.2018