Court directs revenue department to reopen GST portal or accept manual applications for transitional input tax credit due to technical glitches.

Case Name:

Yadu Sugar Ltd. Vs. Union Of India

Writ Tax No. 2 of 2019

Key Takeaways:

- The court recognized the technical difficulties faced by assessees in filing the GST TRAN-1 form on the GST portal.

- It directed the revenue authorities to provide a solution by either reopening the portal or accepting manual applications for transitional input tax credit claims.

- The court’s decision upholds the principles of natural justice and ensures that assessees are not denied their legitimate claims due to technical issues beyond their control.

Issue:

Whether the revenue authorities should be directed to grant the petitioner an option to file the GST TRAN-1 application for claiming transitional input tax credit, given the technical glitches in the GST portal that prevented the petitioner from filing the form within the prescribed timeline.

Facts:

The petitioner, Yadu Sugar Ltd., was unable to file the GST TRAN-1 form on the GST portal due to technical glitches. The form is required for claiming transitional input tax credit under the Goods and Services Tax (GST) regime. The petitioner approached the High Court seeking a direction to the revenue authorities to grant an option to file the GST TRAN-1 application by reopening the GST portal.

Arguments:

Petitioner’s Argument:

The petitioner argued that they could not file the GST TRAN-1 form due to technical issues with the GST portal, which was beyond their control. They sought a direction from the court to allow them to file the form by reopening the portal.

Revenue’s Argument:

The revenue authorities informed the court that the last date for submitting the GST TRAN-1 application had been extended until March 31, 2019, and the petitioner could file the application electronically.

Key Legal Precedents:

The judgment does not explicitly cite any legal precedents. However, the court’s decision is based on the principles of natural justice and ensuring that assessees are not denied their legitimate claims due to circumstances beyond their control.

Judgement:

The High Court directed the revenue authorities to either reopen the GST portal within two weeks to allow the petitioner to file the GST TRAN-1 form or, in the event that the portal is not reopened, to entertain the petitioner’s manual application and pass orders on it after due verification of the claimed credits. The matter was listed for further hearing.

FAQs:

Q1. What is the GST TRAN-1 form, and why is it important?

A1. The GST TRAN-1 form is used by assessees to claim transitional input tax credit under the GST regime. It allows businesses to carry forward the input tax credit accumulated under the previous tax regime (Value Added Tax, Central Excise, etc.) to the GST regime.

Q2. Why did the court direct the revenue authorities to provide an alternative option for filing the GST TRAN-1 form?

A2. The court recognized that the petitioner was unable to file the GST TRAN-1 form due to technical glitches in the GST portal, which was beyond their control. To uphold the principles of natural justice, the court directed the revenue authorities to provide an alternative option, either by reopening the portal or accepting manual applications.

Q3. What is the significance of the court’s decision?

A3. The court’s decision ensures that assessees are not denied their legitimate claims due to technical issues beyond their control. It upholds the principles of natural justice and provides a solution for assessees who faced difficulties in filing the GST TRAN-1 form due to technical glitches in the GST portal.

Q4. What happens if the revenue authorities do not reopen the GST portal?

A4. If the revenue authorities do not reopen the GST portal within the specified time, the court directed them to entertain the petitioner’s manual application for claiming transitional input tax credit and pass orders on it after due verification of the claimed credits.

Q5. Is this decision specific to the petitioner, or does it have broader implications?

A5. While the court’s decision is specific to the petitioner in this case, it sets a precedent for other assessees who faced similar technical difficulties in filing the GST TRAN-1 form. They may be able to seek similar relief from the courts based on this judgment.

Heard Mrs. Pooja Talwar, learned counsel for the petitioner, Sri B.K. Singh Raghuvanshi, learned counsel for the respondent no.5, Sri Devendra Gupta, learned Central Government Standing Counsel for the respondents no. 1 and 2.

It is informed that Sri C.B. Tripathi, learned counsel appears for Respondents no. 3 and 4.

The petitioner in the writ petition is seeking a direction to the respondents to grant option to file GST TRAN-1 application by opening the GST portal.

The case of the petitioner is that electronic portal was not functioning because of some technical glitches in the GST portal and therefore, she could not file her returns.

Learned counsel for the respondents, however, states that the portal is now open till 30.03.2019 and the petitioner may file her GST TRAN-1 application electronically.

Both the counsels may verify if the portal is working and inform the Court on the next date.

Put up as fresh on 10.01.2019.

When the case is next listed, name of Sri Devendra Gupta shall be printed in the cause list as counsel for the respondents.

Order Date: 8.1.2019

Kirti