Where assessee’s attempt to file GST TRAN-02 failed as it had not filed Form GST-TRAN-01 required to be filed before same, such non-submission of GST TRAN-1 being well within extended period provided for same, Nodal Officer was directed to take decision on request of assessee in an expedite manner.

The petitioner is a supplier of goods and services within the State of Karnataka, who has obtained registration under the Central Goods and Services Tax Act, 2017, is also a registered dealer under the Karnataka Value Added Tax Act, 2003.

2. It is the grievance of the petitioner that his attempt to file Form GST TRAN-02 on 28.03.2019 was a futile exercise due to technical error of not filing Form GST-TRAN-01. Complaints/representations made thereafter with the respondents has not yielded any positive response, hence this writ petition.

3. Learned counsel Sri. Ravi Raghavan, appearing for the petitioner would submit that non-filing of Form GST TRAN-02 due to technical glitches encountered on the Portal has resulted in denial of substantive right of the petitioner to take credit of eligible duties in respect of inputs held in stock as pointed out and provided in Proviso to Section 140(3) of the CGST Act, 2017. Rule 117 of the CGST Rules provides for filing of particulars in Form GST-TRAN-01 to take credit of in put tax credit, submit the declaration electronically in Form GST TRAN-01 on the common Portal stating separately the amount of input tax credit of eligible duties and taxes to which he is entitled to. Hence, the petitioner was under the bonafide belief that submitting of Form GST TRAN-01 was not necessary at the time of submitting Form GST TRAN-02 for claiming credit part of the GST paid on the goods lying and supplied from July to December 2017 and thereafter came to know that Form GST TRAN-02 could not be accepted unless Form GST TRAN-01 was filed. Hence, that being the technical glitches, the Nodal Officer appointed under the provisions was required to redress the grievance of the petitioner.

4. Learned counsel Sri. Vikram Huilgol, appearing for the respondents would submit that in terms of Section 140, benefit of credit during the transitional period can be availed only in such a manner as may be prescribed under Rule 117, thereafter CGST rules 17 provides for such availment of input tax credit during the transitional period. In terms of the said rule, submitting the declaration in Form GST TRAN-01 is mandatory. Form GST TRAN-02 is required to file subsequent to filing of Form GST TRAN-01.Form

GST TRAN-02 is only a statement, whereas Form GST- TRAN-01 is a return. Dispensing with Form GST-TRAN- 01 and submitting the statement in Form GST TRAN-02 would defeat the purpose and object of the rules.

5. Learned counsel submitted that sub clause(iii) of clause (b) of sub rule (4) of rule 117 of the Central Goods and Services Tax Rules, 2017, would make it clear that Form GST TRAN-2 has to be furnished subsequent to filing of Form GST TRAN-1. The petitioner having not opted to submit Form GST TRAN-1 now cannot seek for redressal of his grievance by the Nodal Officer, since error, if any, committed by the petitioner cannot be construed as technical glitch calling for interference of the Nodal Officer to redress such grievances.

6. Having heard the learned counsel appearing for the parties and perusing the material on record, this Court is of the considered view that Form GST TRAN-2 was not available on the Portal till March 2018. It may be for various reasons, Form GST TRAN-1 was not submitted by the petitioner well within the extended period provided.

7. Considering the transitional period and to achieve the object of the provisions, this Court finds it appropriate to direct the Nodal Officer to consider the request of the representation submitted by the petitioner dated 25.09.2018 and 16.11.2018 at Annexure-F and G respectively in accordance with law and take decision in an expedite manner. Writ petition stands disposed of in terms of the above.