M/S.As Steel Traders (Vsp) Private Limited vs. The Union Of INDIA
Held
The Court held that the impugned order dated 27.06.2018 was liable to be set aside. The Joint Commissioner had failed to examine the petitioners' specific claim of attempting to file FORM GST TRAN-1 on 27.12.2017 and the alleged server errors. Instead, the order relied on general statistics. The Court noted the subsequent amendment to Rule 117 of the CGST Rules (Notification No.48/2018 dated 10.09.2018) and the Commissioner's order (No.4/2018-GST dated 17.09.2018) which extended the period for filing TRAN-1 for registered persons facing technical difficulties. The Court found it unnecessary to delve into whether the petitioners' inability to file was due to technical glitches, as this was a matter for the authorities to examine under the amended rules. The ratio is that where a statutory amendment recognizes a class of persons facing difficulties, and provides a mechanism for redressal, the original rejection order should be reconsidered in light of these developments. The Court directed that it is open for the petitioners to seek recommendation from the GST Council and satisfy the authorities about their system error claims within the extended timeframe.
Facts
The petitioners, in Writ Petition Nos. 32259 and 33573 of 2018, sought to file FORM GST TRAN-1 to claim input tax credit for pre-GST tax paid. The Joint Commissioner, Visakhapatnam, by an order dated 27.06.2018, rejected their request. The initial deadline for filing TRAN-1 was extended to 27.12.2017. The petitioners claimed they attempted to file on 27.12.2017, while the revenue pointed to a later admission by the petitioners of attempting to file on 28.12.2017. The Joint Commissioner rejected the plea of server error based on general statistics showing other returns were filed. Subsequently, Rule 117 of the CGST Rules was amended on 10.09.2018, allowing extensions for those facing technical difficulties, and the Commissioner extended the deadline to 31.01.2019.
Key Issues
1. Whether the Joint Commissioner erred in rejecting the petitioners' request to file FORM GST TRAN-1 without examining their claim of attempting to file it on 27.12.2017 and the alleged server errors, contrary to the subsequent amendments to Rule 117 of the CGST Rules? (Mixed question of law and fact, concerning Rule 117 of the CGST Rules, 2017, and Order No.09/2017-GST). Petitioner's Contention: The petitioners argued that they had attempted to file their return on 27.12.2017, and the impugned order failed to examine this specific claim, relying instead on general statistics. They also highlighted the subsequent amendment to Rule 117, which recognized technical difficulties faced by dealers. Revenue's Contention: The revenue contended, citing a letter from the petitioners, that the petitioners admitted to attempting to file the return only on 28.12.2017, not on the due date of 27.12.2017. They also presented statistics indicating that other returns were filed successfully during the relevant period, suggesting no systemic failure.
Sections Cited
Rule 117, Section 168
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HON’BLE SRI JUSTICE RAMESH RANGANATHAN AND HON’BLE SMT JUSTICE KONGARA VIJAYA LAKSHMI
Writ Petition Nos.32259 and 33573 of 2018 COMMON ORDER: {Per Hon’ble Sri Justice Ramesh Ranganathan}
Heard Sri K.S.Ravi Shankar, learned counsel appearing on behalf of the petitioners, and Sri B.Narasimha Sarma, learned Senior Standing Counsel for CGST and, with their consent, both these writ petitions are disposed of at the stage of admission.
The dispute, in both these writ petitions, relate to the validity of the order passed by the Joint Commissioner, Visakhapatnam on 27.06.2018 rejecting the petitioners’ request to receive their return in FORM GST TRAN-1 which would enable them to claim input tax credit for the tax paid prior to the introduction of GST. By Order No.09/2017- GST dated 15.11.2017, the Government of India, in the exercise of the powers conferred by Rule 117 of the Central Goods and Services Tax Rules, 2017 (for short “the CGST Rules”) read with Section 168 of the Central Goods and Services Tax Act, 2017 (for short “the CGST Act”), on the recommendation of the GST Council and in supersession of its earlier Order No.07/2017-GST dated 28.10.2017, extende
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