TMI Blog2019 (12) TMI 1048X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Respondents in devising smooth transition to GST regime w.e.f. 01.07.2017, from the erstwhile indirect taxation structure. The Petitioner, being an exporter under the GST regime is entitled to undertake zero rated supplies. Unfortunately, even after passage of over two years, the Respondents have not remedied their omissions and failures by taking corrective steps. They continue to take shelter of the limitations in, and the inability of their software systems to grant refund, despite the same being justified. The rights of the parties cannot be subjugated to the poor and inefficient software systems adopted by the Respondents. The Respondents are directed to refund the amount ₹ 1,37,37,029/- to the Petitioner within four ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,06,050/-. The Petitioner points out that in terms of rule 117 of the CGST Rules, the credit of input tax could be submitted in Form GST TRAN-1 within ninety days of the appointed date which was 01.07.2017. Consequently, the last date for submission of Form GST TRAN-1 was 28.09.2017. However, admittedly, the Form GST TRAN-1 was not made available on the web portal of the Respondents upto 25.08.2017. On account of the aforesaid lapse on the part of the Respondents, the Petitioner could not upload its Form GST TRAN-1 either in the month of July, 2017, or for most part of month of August 2017. However, the business activity of the Petitioner continued, namely, of undertaking exports. The Petitioner states that in the month of July, 2017 it mad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... accumulated prior to the coming into force of the GST regime, during the months of July and August, 2017. He submits that those who filed their Form GST TRAN-1 from 25.08.2017 onwards, got credit in their ITC ledger in the respective months, for utilization. 5. Mr. Singh further submits that under the GST regime, there is no provision for grant of refund of the accumulated ITC and the result of the Petitioner of paying the tax in cash to the tune of ₹ 1,37,37,029/- has been that the Petitioner has earned ITC for the equivalent amount which is lying credited in its ITC ledger from November 2017 onwards, and it is open to the Petitioner to utilize the same in future. Mr. Singh submits that for the months of July and August, 201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The Petitioner claims to have undertaken exports in the months of July and August, 2017 and since its unutilized Input Tax Credit to the tune of ₹ 3,13,06,050/-, which was accumulated up to June, 2017, was not reflected in its ITC ledger as on 01.07.2017, it could not utilize the same w.e.f. 01.07.2017. The same resulted in the Petitioner having to shell out, in cash, ₹ 1,37,37,029/- which would not have been required, had the Respondents taken care to ensure that the Petitioner was able to utilize its accumulated Input Tax Credit in the said months. Even the Form GST TRAN-1 was made available on the portal of the Respondents only from 25.08.2017. The business activity in the country could not be expected to come to a sta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te refund of ₹ 3,05,09,355/- as explained hereinabove. So far as the Petitioner s claim for refund of cash deposit to the tune of ₹ 1,37,37,029/- is concerned, that, in our view can certainly not be denied to him. For the aforesaid reasons, we direct the Respondents to refund the amount ₹ 1,37,37,029/- to the Petitioner within four week from today. While making the refunds, it shall be open to the Respondents to debit the Petitioner s ITC ledger by the same amount. This is also agreeable to the Petitioner. So far as the Petitioner s claim for the refund of the remaining amount is concerned, the Petitioner has already submitted the documents in that regard. The Respondents are directed to pass a reasoned order on the same w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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