The Petitioner had duly transitioned the credit of Service Tax and VAT under the GST Regime by filing Form TRAN-1. Subsequent to the filing of the Form, the Petitioner received confirmation of the same from GSTN portal, however, the said credit was not reflected in the Petitioner’s electronic credit ledger. In respect thereto, the Petitioner had filed a grievance on the GSTN Portal.
However, the Respondent did not allow the revision of TRAN-1 or manual application as there was no evidence of technical glitch as claimed by the Petitioner. Aggrieved, the Petitioner filed a Petition before the Bombay HC seeking a Writ of mandamus directing the Respondent’s to allow transitional credit.
The Bombay HC observed that despite the admitted successful filing of TRAN-1 by the Petitioner, the request for transitioning of credit had not been approved by the Respondent merely on the basis that there were no technical glitches on the GSTN side. It was further observed that there was no further explanation or clarification or evidence on the issue by the Respondents.
The Bombay HC also noted that the whole objective of digitization is to convenience the tax payers and not to harass them. Further, the GST system is still evolving in its implementation. Merely because there were no technical glitches in the GSTN with respect to the Petitioner’s TRAN-1 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. It was observed that this cannot be the objective of the GST system or digitization. Such a situation cannot be countenanced as it would be wholly unfair and unjust.
Accordingly, the HC directed the Respondents to consider the case of the Petitioner on merits and take necessary action within 4 weeks.
BMW India Financial Services Private Limited [WP-LD-VC-85 of 2020]
Disclaimer:
The information provided in this update is intended for informational purposes only and does not constitute legal opinion or advice. Readers are requested to seek formal legal advice prior to acting upon any of the information provided herein. This update is not intended to address the circumstances of any particular individual or corporate body. There can be no assurance that the judicial/ quasi judicial authorities may not take a position contrary to the views mentioned hereinrra quis.
Sign up for the Newsletter