Tara Exports vs. The Union Of INDIA

Held

The Court held that the petitioner had made genuine efforts to file their TRAN 1 returns, not only through online attempts but also by attempting manual submission. The Court acknowledged that GST is a new progressive levy and the IT platform was also new, making it difficult to expect users to back up digital evidence. It was noted that even under old tax laws, substantive input credits could not be denied on procedural grounds. Therefore, considering the special circumstances and the genuine efforts made by the petitioner, the Court directed the respondents to either open the portal for the petitioner to file TRAN 1 electronically or accept the manually filed TRAN 1 dated January 31, 2018, and allow the input credits after processing, if otherwise eligible. The Court explicitly stated that this order shall not be a precedent.

Facts

The petitioner, Tara Exports, an importer and trader, attempted to file TRAN 1 online to claim transitional credit under GST. Due to alleged technical glitches on the GSTN portal, they could not complete the filing by the statutory due date of December 27, 2017. Despite trying the grievance redressal portal and sending an email to the Help Desk, their issue remained unresolved. The petitioner manually filed TRAN 1 on January 31, 2018, but it was returned, directing them to the Help Desk and stating that returns could only be filed online. The petitioner also noted that a government circular issued on March 2, 2018, to address such issues, contemplated the appointment of Nodal Officers, but none were appointed in their case.

Key Issues

1. Whether the petitioner is entitled to a direction for re-opening the online submission facility for TRAN 1 or manual acceptance of their TRAN 1 form, to claim duty credit of Rs. 50,50,050/-, given the alleged technical glitches and their inability to file within the statutory due date? Petitioner's Arguments: The petitioner argued that due to technical glitches in the GSTN portal, they were unable to file TRAN 1 by the due date. They relied on various High Court judgments (Allahabad, Bombay, Chhattisgarh, Delhi, Kerala, and Madras High Court) where similar reliefs were granted to taxpayers facing technical issues with TRAN 1 filing. They contended that the due date for claiming transitional credit is procedural and substantive credits should not be denied on procedural grounds, especially in a new tax regime. Respondents' Arguments: The respondents' arguments are not explicitly recorded in the judgment. However, the context implies they would have likely relied on the statutory due date for filing TRAN 1 and the requirement for online submission.