9911796707
TMI Blog2019 (5) TMI 170X X X X Extracts X X X X X X X X Extracts X X X X ..... seeking a direction to the respondents to enable the petitioner to revise their Form GST TRAN-1 in order to transit the amount of Rs. 4,31,32,066/- in the Electronic Credit Ledger in terms of the provisions of Section 140[1] and Section 140[5] of the Central Goods Service Tax Act, 2017 ['CGST Act' for short] read with Rule 117 / Rule120A of the CGST Rules 2017 ['Rules' for short]. 2. The petitioner company is engaged in manufacturing, trading and selling of electrical and electronic products, engineering solutions, EPC Contracts and software solutions. It is contended that the petitioner was registered as a manufacturer under the Central Excise Act, 1944, as a service provider under the Finance Act, 1994 and also a dealer u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he request of the petitioner has been disapproved by the respondent No.6. Hence, this writ petition. 3. Learned Senior Counsel Sri. Shivadass representing the learned counsel for the petitioner submitted that the credit in dispute was validly earned by them under the old tax regime. There is no dispute about the eligibility of credit and its carry forward under the GST regime. The consequences of not being able to avail the rightful due credit is only due to technical glitches, system error. Section 140[1] of the CGST Act enables the petitioner to avail the credit in Electronic Credit Ledger of the credit earned in earlier tax regime. Rule 117 read with Rule 120A of the CGST Rules provides that the respondent No.5 is duty bound to allow f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anufactured and cleared under such exemption notifications as are notified by the Government." 7. Rule 117 of the Rules deals with the Transitional Provisions and the same reads as under: "117. Tax or duty credit carried forward under any existing law or on goods held in stock on the appointed day [1] Every registered person entitled to take credit of input tax under section 140 shall, within ninety days of the appointed day, submit a declaration electronically in FORM GST TRAN-1, duly signed, on the common portal specifying therein, separately, the amount of input tax credit [of eligible duties and taxes, as defined in Explanation 2 to section 140] to which he is entitled under the provisions of the said section: PROVIDED, that the Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lates regarding removal of difficulties and the same is quoted here under for ready reference: "172. Removal of difficulties [1] If any difficulty arises in giving effect to any provisions of this Act, the Government may, on the recommendations of the Council, by a general or a special order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act or the rules or regulations made thereunder, as may be necessary or expedient for the purpose of removing the said difficulty: PROVIDED that no such order shall be made after the expiry of a period of three years from the date of commencement of this Act. [2] Every order made under this section shall be laid, as soon as may be, after i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y. 13. Regarding the IT grievance redressal mechanism to address the grievances due to technical glitches on GST Portal, circular instructions has been issued by the Government of India, Ministry of Finance [Department of Revenue] Central Board of Excise & Customs, New Delhi dated 03.04.2018. 14. Section 172 of the Act contemplates about the removal of difficulties wherein correction/rectification/revision of the FORM GST TRAN-1 can also be addressed on general or special basis, taking into account the ground realities qua effective implementation of Section 140 of the Act. 15. Considering these aspects, this Court in M/s. Atria Convergnece Technologies Ltd reported in 2019 VIL-127-Karnataka (supra), has held that the petitioner therein ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nts made under Section 140 of the Act requires to be achieved to its logical end and accordingly directed the petitioner to approach the jurisdictional Nodal Officer and the Nodal Officer was directed to consider the grievances of the petitioner in accordance with law. 18. For the a foregoing reasons, the request of the petitioner to revise the Form GST TRAN-1 for the first time cannot be denied on technicalities. The avowed object and purpose of the transitional arrangements has to be achieved. In the new tax regime, such glitches not being uncommon, a pragmatic approach would sub-serve the ends of justice. Accordingly, The order impugned at Annexure-A is set aside and the matter is restored to the file of the respondent No.6 to r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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