GST Council Ordered to Reopen Portal for Assessee's TRAN-1 Filing Due to Technical Glitch

Case Name:

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

Writ Tax No. 170 of 2018

Key Takeaways:

- The court recognized technical glitches in the GST portal as a valid reason for late filing of TRAN-1 forms.

- Authorities were directed to reopen the portal or accept manual applications in cases where technical issues prevented timely filing.

- The judgment sets a precedent for similar cases where assessees face technical difficulties in complying with GST requirements.

Issue:

Whether the petitioner should be allowed to file Form GST TRAN-1 after the deadline due to technical glitches on the GST portal?

Facts:

- The last date for filing Form GST TRAN-1 was December 27, 2017.

- The petitioner claimed to have made several attempts to upload the form on the last date but failed due to system errors.

- The petitioner filed a writ petition seeking directions to enable them to take credit of available input tax.

- The respondents were served with a notice of the writ petition two days before the hearing.

Arguments:

Petitioner's Arguments:

- Despite multiple attempts, they couldn't upload FORM GST TRAN-1 due to technical glitches on the GST portal.

- They risk losing entitled credit due to the system's failure.

Respondents' Arguments:

- A new committee was likely to be formed to handle individual cases within the next two weeks.

- They couldn't provide an exact date for resolving the issue.

Key Legal Precedents:

The judgment doesn't explicitly mention any specific legal precedents. However, it relies on the principle of natural justice and the need to provide a fair opportunity to taxpayers facing technical difficulties.

Judgement:

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

- If reopening the portal wasn't possible, the authorities were instructed to entertain the petitioner's application manually.

- The authorities were ordered to verify the credits claimed by the petitioner and pass appropriate orders.

- The court ensured that the petitioner would be allowed to pay taxes on the regular electronic system using the credit likely to be considered.

FAQs:

Q1: What was the main issue in this case?

A1: The main issue was whether an assessee should be allowed to file Form GST TRAN-1 after the deadline due to technical glitches on the GST portal.

Q2: What did the court order?

A2: The court ordered the authorities to either reopen the portal within two weeks or accept manual applications from the petitioner.

Q3: Does this judgment apply to other similar cases?

A3: While each case is unique, this judgment could set a precedent for similar situations where assessees face technical difficulties in filing GST forms.

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

A4: If taxpayers face technical issues preventing them from filing important GST forms, they should document their attempts and consider seeking legal recourse if the authorities don't provide a solution.

Q5: Did the court specify a new deadline for filing the TRAN-1 form?

A5: The court didn't specify a new deadline but directed the authorities to reopen the portal within two weeks from the date of the order (February 13, 2018).

Heard Sri Ashok Trivedi, learned counsel the petitioner and Sri Piyush Agrawal, learned Counsel for the respondent no.4, Sri B.K.S. Raghuvanshi, learned counsel for the respondents no.1, 2, & 3.

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.

The respondents have been served with a notice of this writ petition two days ago and they have instructions to state that some new committee is likely to be formed, which will take care of the individual cases probably within next two weeks but are unable to give any exact date.

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 the writ petition shall stand disposed of finally.

Order Date : 13.2.2018

S.P.