Case Laws
Acts
Notifications
Circulars
Classification
Forms
Manuals
Articles
News
D. Forum
Highlights
Notes
🚨 Important Update for Our Users
We are transitioning to our new and improved portal - www.taxtmi.com - for a better experience.
⚠️ This portal will be discontinued on 31-07-2025
If you encounter any issues or problems while using the new portal,
please
let us know via our feedback form
so we can address them promptly.
Home
2025 (4) TMI 340 - HC - GSTValidity of direction to open the GST portal enabling the writ petitioner to submit the revised FORM GST TRAN-1 in view of Rule 120A of the Central Goods and Services Tax Rules 2017 - HELD THAT - A registered assessee who was eligible for a credit of tax paid under pre-GST regime was entitled to claim credit of input taxes as per the provisions contained in Section 140 of the Central GST Act. GST TRAN-1 is the transition form to be filed for taxpayers who were registered under the pre-GST regime to avail the accumulated input tax remaining in their account on 30-6-2017 i.e. the day preceding the appointed day. The said form is to be filed by every person having input tax credit on the closing stock and who have migrated to GST regime. It is the case of the writ petitioner / respondent No. 1 herein that the Tax Consultant engaged by it while opening and making entries in TRAN-1 portal qua the writ petitioner instead of entering eligible CENVAT credit amount mistakenly entered NIL in the Form TRAN-1 and pressed the submit button upon which immediately the Form got freezed and there was no option to edit the uploaded form which is also supported by the affidavit of Tax Consultant Mr. Rishikesh Sharma filed along with the writ petition vide Annexure P-6 against which the writ petitioner made representation to the Principal Commissioner Central GST Central Excise but to no avail. Whether on account of such technical error / advertent error can the registered assessee be denied the transitional credit? - HELD THAT - The Supreme Court in Filco Trade Centre Private Limited 2022 (7) TMI 1232 - SC ORDER considering the technical glitches suffered by the registered assessees granted two months time from 1-9-2022 to 31-10-2022 to file transitional credit through TRAN-1 and TRAN-2 and extended the same up to 30-11-2022 by order dated 2-9-2022. The Supreme Court in the matter of Collector of Central Excise Pune and others v. Dai Ichi Karkaria Ltd. and Others 1999 (8) TMI 920 - SUPREME COURT held that credit obtained by the manufacturer for the excise duty paid on raw material to be used by him in the production of an excisable product is indefeasible. Coming to the facts of the present case although the writ petitioner committed blunder in filing Form TRAN-1 but as per the writ petitioner huge sum of money was credited in his account and same was found lying unutilized in the last return filed by it for the month of June 2017. As held by the Supreme Court in Unichem Laboratories Ltd. 2002 (9) TMI 110 - SUPREME COURT it is not the duty of the Revenue to deprive an assessee of the benefit available to him in law and for which he was otherwise eligible and is legitimately available to him and the authorities functioning under the Act are required to act reasonably and fairly. The circular issued under Section 168A of the Central GST Act would not come in way of the assessee to revise its Form TRAN-1 and in that view of the matter the learned Single Judge is absolutely justified in directing respondents No. 1 2 5 therein to facilitate revising of Form GST TRAN-1 to the writ petitioner. We do not find any good ground to entertain the instant writ appeal. Conclusion - The right to transitional credit are indefeasible and cannot be curtailed by procedural technicalities or administrative instructions. The appeal dismissed upholding the Single Judge s order to allow the writ petitioner to revise FORM GST TRAN-1.
|