Ting Tong International PVT.LTD. vs. Union Of INDIA
Held
The Court held that the substantive right to carry forward tax credit cannot be denied solely due to procedural defects or inability to establish a system error, especially when system logs confirm attempts to log in. It directed the respondents to permit the petitioners to file their TRAN-1 Forms, either electronically or manually, by December 31, 2019, allowing verification of genuineness but not denial based on the original deadline.
Facts
Petitioners, who migrated from VAT to GST, were entitled to carry forward input tax credit by filing Form GST TRAN-1 by December 27, 2017. They claimed they were unable to upload the necessary details due to technical glitches on the GSTN portal, leading to the respondents denying their credit transfer requests.
Key Issues
Can taxpayers be denied the carry-forward of input tax credit from the pre-GST regime to the GST regime if they attempted to file Form GST TRAN-1 but faced technical glitches on the GSTN portal, missing the prescribed deadline? Can a substantive right to credit be denied due to procedural non-compliance attributed to system errors?
Sections Cited
Section 139, Section 140, Section 141, Section 142, Section 143, Rule 117, Form GST TRAN-1
AI-generated summary — verify with the full judgment below
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE A.K.JAYASANKARAN NAMBIAR FRIDAY, THE 13TH DAY OF DECEMBER 2019 / 22ND AGRAHAYANA, 1941 WP(C).No.11424 OF 2019(C) PETITIONER: LEO DISTRIBUTORS LEO LOGISTICS PARK, N.H.BYEPASS JUNCTION, KUTTANELLUR, THRISSUR-680014. REPRESENTED BY ITS CEO, SAJAN GANAPATHY, AGED 45, S/O.T.M.GANAPATHY. BY ADVS. SRI.HARISANKAR V. MENON SMT.MEERA V.MENON SMT.K.KRISHNA RESPONDENTS: 1 THE COMMISSIONER OF STATE GST TAX TOWERS, KARAMANA, KILLIPPALAM, THIRUVANANTHAPURAM- 695002. 2 GOODS AND SERVICES TAX NETWORK PVT.LTD., EAST WING, 4TH FLOOR, WORLD MARK-1, AEROCITY, NEW DELHI-110037, REPRESENTED BY ITS MANAGING DIRECTOR. 3 GOODS AND SERVICE TAX COUNCIL, 5TH FLOOR, TOWER-II, JEEVAN BHARATI BUILDING, JANPATH ROAD, CONNAUGHT PLANCE, NEW DELHI-110001 REPRESENTED BY ITS CHAIRMAN. 4 THE NODAL OFFICER, STATE GST DEPARTMENT, TAX TOWERS, KARAMANA, THIRUVANANTHAPURAM-695002. 5 THE ASST. COMMISSIONER/NODAL OFFICER, CENTRAL GST AND CENTRAL EXCISE, THRISSUR DIVISION, THRISSUR-680001. 6 THE DEPUTY COMMISSIONER (TECH) OFFICE OF THE COMMISSIONER, CENTRAL TAX AND CENTRAL EXCISE, CENTRAL REVENUE BUILDING, IS PRESS ROAD, KOCHI- 682018 R2 BY SRI.P
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