Metrends Shoes & Bags LLP. vs. The Superintendent Of Central Tax And Central Excise - Kerala High Court, 14 September 2018

Cause title — parties, addresses and appearances

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DAMA SESHADRI NAIDU FRIDAY ,THE 14TH DAY OF SEPTEMBER 2018 / 23RD BHADRA, 1940 WP(C).No. 24741 of 2018 PETITIONER/S: METRENDS SHOES & BAGS LLP., 28/314-3,314-4,315-5, ASWINI JUNCTION,PATTURAKKAL, THIRUVAMPADI P.O,THRISSUR, PIN 682 022, REPRESENTED BY ITS DEISGNATED PARTNER ANVER SATHATH P.S. BY ADVS. SRI.R.MURALIDHARAN (AROOR) SRI.R.RAMAKRISHNAN POTTY RESPONDENT/S: 1 THE SUPERINTENDENT OF CENTRAL TAX AND CENTRAL EXCISE OFFICE OF THE SUPERINTENDENT OF CENTRAL TAX AND CENTRAL EXCISE,CENTRAL EXCISE BUILDING, SAKTHAN THAMPURAN NAGAR,THRISSUR, PIN 682 001, KERALA 2 UNION OF INDIA REPRESENTED BY THE SECRETARY (REVENUE)MINISTRY OF FINANCE, DEPARTMENT OF REVENUE,GOVERNMENT OF INDIA, NORTH BLOCK,NEW DELHI -110 001 3 THE COMMISSIOENR OF STATE TAXES TAX TOWEER, KILLIPALAM,KARAMANA P.O,THIRUVANANTHAPURAM 695 002. 4 STATE OF KERALA REPRESENTED BY THE SECRETARY TO GOVERNMENT,TAXES DEPARTMENT, GOVERNMENT SECRETARIAT,THIRUVANANTHAPURAM, PIN 695 002. 5 THE NODAL OFFICER FOR STATE GST GOODS AND SERVICE TAX DEPARTMENT,TAX TOWEER, KARAMANA, W.P.(C) No.24741/2018 2 THIRUVANANTHAPURAM,PIN 695 002. 6 THE NODAL OFFICER FOR CENTRAL GST DEPARTMENT OF GOODS AND SERVICE TAX,TAX TOWER, KARAMANA, THIRUVANANTHAPURAM, PIN 695 002. 7 ADDL. 7TH RESPONDENT IMPLEADED THE CHAIRMAN, GOODS AND SERVICE TAX NETWORK,EAST WING,4TH FLOOR, WORLD MARK-1,ACROCITY, NEW DELHI- 110 037. ADDITIONAL 7TH RESPONDENT IS IMPLEADED AS PER THE ORDER DATED 14/09/2018 IN I.A NO. 14236/2018. BY ADVS. SRI.P.R.SREEJITH, SC, CENTRAL BOARD OF EXCISE AND CUSTOMS SRI.P.R.SREEJITH SC CENTRAL BOARD OF EXCISE AND CUSTOMS OTHER PRESENT: DR THUSHARA JAMES GP THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 14.09.2018, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

JUDGMENT The petitioner, a registered dealer under the Kerala Value Added Tax Act, has now migrated to the Goods and Services Tax regime. To use the input tax available to its credit at the time of migration, the petitioner had to upload FORM GST TRAN-1 within the stipulated time. The petitioner asserts that though it attempted to upload the form within the time, it failed because of some system error. The petitioner, therefore, seeks directions for taking credit of the available input tax.

Heard the learned counsel for the petitioner, the learned Government Pleader, as well as the learned Standing Counsel, besides perusing the record.

The Government of India has issued Circular No.39/13/2018-GST, dated 03.04.2018, for “setting up an IT Grievance Redressal Mechanism to address the grievances of taxpayers due to technical glitches on GST Portal.” Paragraph 5 of the circular outlines the procedure the Nodal Officers is to follow. It reads:

Nodal officers and identification of issues

1 GSTN, Central and State government would appoint nodal officers in requisite number to address the problem a taxpayer faces due to glitches, if any, in the Common Portal. This would be publicized adequately.

2 Taxpayers shall make an application to the field officers or the nodal officers where there was a demonstrable glitch on the Common Portal in relation to an identified issue, due to which the due process as envisaged in law could not be completed on the Common Portal.

3 Such an application shall enclose evidences as may be needed for an identified issue to establish bona fide attempt on the part of the taxpayer to comply with the due process of law

4 These applications shall be collated by the nodal officer and forwarded to GSTN who would on receipt of application examine the same. GSTN shall after verifying its electronic records and the applications received, identify the issue involved where a large section of tax payers are affected. GSTN shall forward the same to the IT Grievance Redressal Committee with suggested solutions for resolution of the problem. (italics supplied)

Not only the petitioner but also many other people faced this technical glitch and approached this Court. Both the learned counsel submit that this Court on earlier occasions permitted the petitioners to apply to the Nodal Officer concerned to have the issue resolved.

So, here too, the petitioner may apply to the Nodal Officer. The petitioner applying, the Nodal Officer will look into the issue and facilitate the petitioner’s uploading FORM GST TRAN-1, without reference to the time-frame. Ordered so.

I may also observe that if the petitioner applies within two weeks after receiving this judgment, the Nodal Officer will consider it and take steps within a week thereafter. If the uploading of FORM GST TRAN-1 is not possible for reasons not attributable to the petitioner, the authority will also enable it to take credit of the input tax available at the time of its migration. With these directions, I dispose of the Writ Petition. DAMA SESHADRI NAIDU JUDGE jjj APPENDIX PETITIONER'S/S EXHIBITS: EXHIBIT P1OF THE TRAN-1 E-FILED BY THE PETITIONER FOR THE YEAR 2017-2018 EXHIBIT P2OF THE SCREENSHOT OF THE ACKNOWLEDGEMENT FOR RECEIPT OF TRANS-1 DATED 12-09-2017 EXHIBIT P3OF THE SCREESHOT OF THE REQUEST MADE BY THE PETITIONER TO RECTIFY THE ERROR IN ELECTRONIC CREDIT LEDGER,DT 20-09-2017 EXHIBIT P4OF THE SCREENSHOT OF THE ACKNOWLEDGMENT FOR RECEIPT OF EXT P-3 DATED 23-09-2017 EXHIBIT P5OF THE SCREENSHOT OF THE FRESH APPLICATION, BY THE PETITIONER TO RECTIFY THE ERROR IN ELECTRONIC CREDIT LEDGER, DT 23-10-2017 EXHIBIT P6OF THE SCREESHOT OF THE REMINDER FILED BY THE PETITIONER TO RECTIFY THE ERROR, DT. 10-01-2018 EXHIBIT P7OF THE SCREESHOT OF THE INTIMATION RECEIVED BY THE PETITIONER REGARDING RESOLVE OF THE ISSUE, DT. 28-01-2018 EXHIBIT P8OF THE SCREESHOT OF THE INTIMATION RECEIVED BY THE PETITIONER REGARDING RESOLVE OF THE ISSUE, DT. 03-02-2018 EXHIBIT P9OF THE SCREENSHOT OF THE INTIMATION RECEIVED BY THE PETITIONER REGARDING CORRECTION OF ERROR, DT 16-03-2018 EXHIBIT P10OF THE SCREENSHOT OF THE FURTHER REQUEST MADE BY THE PETITIONER TO RECTIFY THE ERROR, DT. 11-04- 2018 EXHIBIT P11OF THE CIRCULAR NO. 39/13/2018-GST DATED 03- 04-2018 ISSUED BY THE 2ND RESPONDENT.