M/S. Baril Marketing PVT. LTD. vs. The Union Of INDIA And 5 Ors.

Held

The Court disposed of the writ petition based on the submission made by the learned ASGI on behalf of the respondent authorities. The Court noted that the GST authorities were willing to facilitate the submission of Form GST TRAN-2 in relation to Part-7A. This facilitation would involve either enabling the petitioner to file the form electronically or providing an adequate mechanism for manual filing if the portal was not functioning properly. The Court directed that the petitioner could submit a representation detailing their grievances, and the Commissioner would consider it and make necessary arrangements for filing the form. The petitioner was granted liberty to approach the Court again if they faced any further difficulty. The Court did not delve into the merits of the petitioner's claim regarding the malfunctioning of the portal or the entitlement to credit, as the matter was resolved through the proposed facilitation by the authorities.

Facts

M/s. Baril Marketing Pvt. Ltd., a company dealing in food items and FMCG, is registered under the CGST Act, 2017. The petitioner filed its TRAN-1 return correctly but was unable to submit Form GST TRAN-2 in relation to Part-7A. The GST portal did not reflect the value of the stock submitted in TRAN-1, which was necessary for claiming import credit via TRAN-2. Initially, the Commissioner of Taxes indicated that TRAN-2 could not be accepted if the portal did not reflect the TRAN-1 stock value. The petitioner alleged that the GST portal was not functioning properly. This writ petition was filed challenging the inability to file the required form.

Key Issues

1. Whether the petitioner is entitled to submit Form GST TRAN-2 in relation to Part-7A, despite the GST portal not reflecting the stock value submitted in TRAN-1, and if the GST authorities are obligated to provide a mechanism for such submission, considering the alleged malfunctioning of the portal? (Mixed question of law and fact, turning on the interpretation and application of provisions related to transitional credit and portal functionality). Petitioner's contention: The petitioner argued that they had filed TRAN-1 correctly and were entitled to claim import credit by filing TRAN-2. They contended that the inability to file TRAN-2 was due to the malfunctioning of the GST portal, and the authorities should provide a remedy. They relied on the principle that assessees should not be prejudiced by technical glitches. Revenue's contention: The respondent authorities, through the ASGI, submitted that they were willing to facilitate the submission of Form GST TRAN-2, either electronically or manually, if the portal was not functioning properly. They agreed to consider the petitioner's grievances upon representation.