TMI Blog2020 (10) TMI 1217X X X X Extracts X X X X X X X X Extracts X X X X ..... ous that the GST system is still evolving in its implementation. We are of the view that merely because there were no technical glitches in the GSTN with respect to the Petitioner s TRAN-1 which was admittedly filed in time, the claim of the Petitioner, if it was otherwise eligible in law, cannot be rejected for no apparent fault on the part of the Petitioner. This cannot be the objective of the GST system or digitisation. Such a situation cannot be countenanced as it would be wholly unfair and unjust - this is a fit case for invocation of our writ jurisdiction. The Respondents are directed to consider the case of the Petitioner and after looking into the merits of the claim and physically or otherwise verifying the amount of VAT as claimed by the Petitioner take such actions as may be necessary for transitioning the credit of such amount into the Petitioner s credit ledger/ electronic credit ledger within four weeks from the date of this order. - WP-LD-VC-85 OF 2020 - - - Dated:- 29-10-2020 - UJJAL BHUYAN ABHAY AHUJA, JJ. Mr. Karthik Sundaram with Ms. Ashwini, Ms. Chandni Tanna and Ms. Shrushti Relekar i/b. India Law Alliance, for the Petitioner. Mr. Pradeep S. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inuing post introduction of Goods and Services Tax Act, 2017, i.e. post 01.07.2017. On such contracts, the Petitioner had paid Service tax on 10% of the interest portion of such contract and had upfront deposited 100% Value Added Tax ( VAT ) in the first month of the contract itself, on the entire value of rentals as per specific provisions. It is entitled to carry forward the VAT paid in terms of section 142(11)(c) of the Maharashtra GST Act, 2017 ( MGST ) which is pari materia with section 142 (11)(c) of the Central Goods Services Tax Act, 2017 ( CGST ) Act as State Credit/VAT. The transitional VAT credit is also required to be reflected in FORM GST TRAN-1 as set out under rule 118 read with rule 117 of the MGST Rules 2017. It is submitted that the proportionate VAT amount of ₹ 17,07,673/- pertaining to the period post 01.07.2017, but paid upfront before 30.06.2020 was to be transitioned to GST regime. The amount is reflective of the VAT paid which is eligible to be carried forward as State Tax Credit in terms of Section 142(11) (c) of the MGST Act. 6. It is the case o5-wp-ld-vc-85-2020 f the Petitioner that on 27th December, 2017 it had submitted declaration in Form G ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e such actions as may be necessary for transitioning the credit of ₹ 17,07,673/- as filed by the Petitioner in Form GST TRAN-1 on 27.12.2017 to avail the credit of ₹ 17,07,673/- either electronically or manually. 11. Respondents have filed affidavits in reply and the Petitioner has also filed its rejoinders to the same. 12. In paragraph 5 of the affidavit in reply filed on behalf of Respondent Nos.1, 3 and 4, it is submitted that the GSTN viz: Respondent No.4 herein has informed that the GSTN had completed technical analysis of the Petitioner s / tax payer s case and forwarded it to 1st IT Grievance Redressal Committee ( ITGRC ) in line with CBIC Circular No.39/13/2018 dated 3rd April, 2018 for appropriate decision. It is further submitted that the Petitioner s case was not approved for TRAN-I filing in the 1st ITGRC meeting as it was observed that The taxpayer has successfully filed TRAN-I and no technical errors has been found. This include cases in which the taxpayer was unable to file as they were stuck in submit and have subsequently filed. It is submitted that the Petitioner s case was dealt with by GSTN in accordance with the Circular No.39/13/2018 date ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -1 or accept manual filing of TRAN-1 within prescribed date. He further submits that unutilized credit has been recognized as a vested right and property in terms of Article 300A of the Constitution of India and has relied upon the decision of the Punjab Haryana High Court in the case of Adfert Technologies Pvt. Ltd., v/s. Union of India 2019- VIL-537- P H to enable the Petitioner to again file TRAN-1 electronically or to accept a manually filed TRAN-1. 17. Learned Sr. Counsel for the Respondent Nos. 1, 3 4 Shri Jetly has relied on the decision of this Court in NELCO Limited v/s. Union of India and Others (W. P. No. 6998 of 2018) to submit that unless there is a technical glitch from the GSTN side, which according to the ITGRC is not the case, the portal cannot be re-opened. He submits that there is a clear finding on this aspect and the 1st ITGRC has not approved the Petitioner s case. He submits that, therefore, the NELCO s decision is clearly applicable and not the decision in the case of Bhargava Motors (supra). He further submits that this Court in the case of NELCO (supra) has already considered the decision of Bhargava Motors (supra) and has not placed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es) as ultra vires Sections 140 (1), (2), (3) (5) of the CGST Act to the extent that it prescribes a time limit for filing of TRAN-1 Form. Whereas in the case at hand, it is an admitted fact that Form GSTN TRAN- 1 was successfully filed on 27th December, 2017. Moreover, in this case, there is no constitutional / vires challenge. 20. It is not necessary for us to dwell on the case of Bhargava Motors (supra) as although there also as in this case the TRAN-1 was filed on 27th December, 2017 and the duty credit was not reflected in its electronic credit ledger, the fact that satisfied the Court was that the Petitioner had difficulty in filling up correct credit amount in the TRAN-1 form, which does not appear to be the fact in the case at hand. In fact, in this case, the filing of Form TRAN-1 on 27th December, 2017 has been found to be successful and there is no reference to any difficulty in filling up the correct credit amount. 21. In this case, we are not examining the issue whether the Petitioner is entitled to VAT tax credit as claimed by the Petitioner which will be examined by the authorities. What we are concerned with is that despite the admitted successful filing of F ..... X X X X Extracts X X X X X X X X Extracts X X X X
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