Court directs revenue authorities to reopen GST portal or accept manual TRAN-1 filing for assessee facing technical glitches.

Case Name:

M/s. G.E.T. And D, India Ltd. Vs. Union Of India

Writ Tax No. 1000 of 2019

Key Takeaways:

- The court acknowledged the technical difficulties faced by the assessee in filing the complete GST TRAN-1 form.

- The revenue authorities were directed to either reopen the portal within a stipulated time or accept the manual filing of TRAN-1 from the assessee.

- The court’s decision aimed to provide relief to the assessee who was unable to claim legitimate transitional credits due to technical glitches.

- The judgment highlights the court’s proactive approach in ensuring a fair and accessible transition to the GST regime.

Issue:

Whether the revenue authorities should be directed to reopen the GST portal or accept manual filing of TRAN-1 from the assessee, who was unable to file the complete form due to technical glitches in the electronic system.

Facts:

- The petitioner (assesses) was unable to file the complete GST TRAN-1 form for claiming transitional credits due to technical glitches in the revenue’s electronic system.

- The assesses application for filing TRAN-1 was not fully entertained on the last date (27.12.2017).

- The assesses filed a writ petition seeking directions to the GST Council to recommend extending the time period for amending the GST TRAN-1.

- The assesses alleged that despite several efforts, the electronic system did not respond, leading to a potential loss of legitimate credits.

Arguments:

- The petitioner (assesses) argued that due to technical glitches in the revenue’s electronic system, they were unable to file the complete GST TRAN-1 form and claim the necessary transitional credits.

- The assesses sought a writ of mandamus directing the GST Council to recommend extending the time period for amending the GST TRAN-1.

Key Legal Precedents:

The judgment did not cite any specific legal precedents verbatim.

Judgement:

- The court did not make a final decision on the merits of the case.

- The court directed the revenue authorities (respondents), represented by the Union of India, to file an affidavit from an authorized and responsible officer detailing the steps taken or proposed for the constitution of the GST Appellate Tribunal (GSTAT) for Uttar Pradesh within three weeks.

As interim relief, the court directed the revenue authorities to either:

- Reopen the portal within two weeks, or Entertain the assessee’s GST TRAN-1 manually and pass orders on it after due verification of the claimed credits.

- The court also ordered that the assessee should be allowed to pay taxes on the regular electronic system using the credits likely to be considered for them.

The court granted the revenue authorities one month to file a counter-affidavit.

FAQs:

Q1: What was the main issue in this case?

A1: The main issue was the assessee’s inability to file the complete GST TRAN-1 form due to technical glitches in the revenue’s electronic system, preventing them from claiming legitimate transitional credits.

Q2: What did the court direct the revenue authorities to do?

A2: The court directed the revenue authorities to either reopen the GST portal within two weeks or entertain the assessee’s TRAN-1 manually and pass orders on it after due verification of the claimed credits.

Q3: Did the court make a final decision on the merits of the case?

A3: No, the court did not make a final decision on the merits of the case. It issued interim directions and ordered the revenue authorities to file an affidavit regarding the constitution of the GST Appellate Tribunal.

Q4: What interim relief was granted to the assesses?

A4: The court granted interim relief to the assesses by directing the revenue authorities to release their seized goods and vehicle, subject to the assesses furnishing a bank guarantee.

Q5: What is the significance of this case?

A5: This case highlights the court’s proactive approach in ensuring a fair and accessible transition to the GST regime by addressing the technical difficulties faced by assesses in claiming legitimate transitional credits.

Heard Shri Shubham Agrawal, learned counsel for the petitioner and Shri R.C. Shukla and Shri K.J. Shukla, learned counsel for the respondents.

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 amending the GST Tran-1 in the case of the petitioner because his application was not fully 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, 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. Benefit of entire CENVAT credit has not been granted.

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 17.10.2019.

Order Date :- 16.9.2019