Alpha Trading Company vs. The Superintendent - Kerala High Court, 19 September 2018

Cause title — parties, addresses and appearances

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DAMA SESHADRI NAIDU WEDNESDAY,THE 19TH DAY OF SEPTEMBER 2018 / 28TH BHADRA, 1940 WP(C).No. 29560 of 2018 PETITIONER/S: ALPHA TRADING COMPANY PADANILAM JUNCTION, NEAR M.S.M COLLEGE, KAYAMKULAM-690502, REPRESENTED BY ITS PROPRIETOR SRI.S.NAUSHAD. BY ADVS. AJI V.DEV SRI.ALAN PRIYADARSHI DEV SRI.H.ABDUL LATHIEF SMT.O.A.NURIYA RESPONDENT/S: 1 THE SUPERINTENDENT CENTRAL GST AND CENTRAL EXCISE, B.S.N.L BUILDING, KAYAMKULAM- 690502. 690502 2 THE DEPUTY COMMISSIONER CENTRAL GST AND CENTRAL EXCISE, ALAZPPUZHA DIVISION 688001 3 THE NODAL OFFICER FOR STATE GST, STATE GOODS AND SERVICE TAXES, TAX TOWER, KILLIPPALAM KARAMANA P.O., THIRUVANANTHAPURAM 695002 4 THE NODAL OFFICER FOR CENTRAL GST, GOODS AND SERVICE TAXES, TAX TOWER, KILLIPPALAM KARAMANA P.O., THIRUVANANTHAPURAM 695002. (CORRECTED) (ADDRESS OF R4 IS CORRECTED THE NODAL OFFICER/DEPUTY COMMISSIONER OFFICE OF THE COMMISSIONER OF CENTRAL TAXES AND CENTRAL EXCISE, C.R.BUILDING, I.S PRESS ROAD, W.P.(C) No.29560/2018 2 KOCHI-18 AS PER ORDER DATED 19/09/2018 IN IA.01/2018) 5 THE COMMISSIONER OF STATE TAX, STATE GOODS AND SERVICE TAXES, TAX TOWER, KILLIPPALAM KARAMANA P.O., THIRUVANANTHAPURAM 695002 6 UNION OF INDIA THROUGH ITS SECRETARY (REVENUE) MINISTRY OF FINANCE, DEPARTMENT OF REVENUE, GOVERNMENT OF INDIA, NORTH BLOCK, NEW DELHI 110001 7 GOODS AND SERCICES TAX NETWORK THROUGH ITS CHAIRPERSON, EAST WING, 4TH FLOOR, WORLD MARK-1, AEROCITY, NEW DELHI 110037 BY ADVS. DR. THUSHARA JAMES, GP SRI.P.R.SREEJITH,SC,GOODS AND SERVICES TAX NETWORK THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 19.09.2018, 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 P1 AOF THE REGISTRATION CERTIFICATE ISSUED TO THE PETITIONER UNDER THE GST LAW EXHIBIT P2 AOF THE LETTER SENT TO THE 1ST RESPONDENT DATED 26.04.2018 EXHIBIT P3 AOF THE LETTER SENT TO THE 3RD RESPONDENT BY THE 1ST RESPONDENT DATED 01.05.2018 EXHIBIT P3 A AOF THE REVISED LETTER SENT TO THE 3RD RESPONDENT BY THE 1ST RESPONDENT DATED 30.05.2018 EXHIBIT P4 AOF CIRCULAR NO. 39/13/2018-GST DATED 03.04.2018 EXHIBIT P5 AOF JUDGMENT OF THIS HONBLE COURT IN NAGA DISTRIBUTORS V. UNION OF INDIA AND OTHERS