Leo Distributors vs. Union Of INDIA - Kerala High Court, 23 July 2018

Heard together (2 matters)

W.P(C) 17348 OF 2018

W.P.(C) No.24553 of 2018

Read from the judgment's own cause title. This page is filed under one of them.

Cause title — parties, addresses and appearances

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR. JUSTICE DAMA SESHADRI NAIDU MONDAY, THE 23RD DAY OF JULY 2018 / 1ST SRAVANA, 1940 WP(C).No. 24553 of 2018 PETITIONER LEO DISTRIBUTORS 25/1286/2, HOUSE OF LEO, PAZHAYANADAKKAVU, THRISSUR- 680 001. REPRESENTED BY ITS AUTHORISED SIGNATORY SRI. SAJAN GANAPATHY BY ADVS.SRI.S.ANIL KUMAR (TRIVANDRUM) SRI.M.RAJAGOPAL RESPONDENTS: 1. UNION OF INDIA REPRESENTED BY ITS SECRETARY (REVENUE), MINISTRY OF FINANCE, DEPARTMENT OF REVENUE, GOVERNMENT OF INDIA, NORTH BLOCK, NEW DELHI- 110 001 2. THE PRINCIPAP SECRETARY FINANCE (GST WING) FINANCE (REV-1) DEPARTMENT 4TH LEVEL, A-WING, DELHI SECRETARIAT, IP ESTATE, NEW DELHI- 110 002. 3. GST COUNCIL REPRESENTED BY ITS CHAIRPERSON, DEPARTMENT OF FINANCE, NORTH BLOCK, NEW DELHI- 110 001. 4. GOODS AND SERVICES TAX NETWORK REPRESENTED BY ITS CHAIRMAN, EAST WING, 4TH FLOOR, WORLD MARK-1, AEROCITY, NEW DELHI- 110 037 5. THE COMMISSIONER STATE GOODS AND SERVICES TAX DEPARTMENT, TAX TOWER, KARAMANA, THIRUVANANTHAPURAM- 695 002 6. THE DEPUTY COMMISSIONER/NODAL OFFICER O/O COMMISSIONER OF CENTRAL GST & CENTRAL EXCISE, GST BHAVAN, PRESS CLUB ROAD, STATUE, THIRUVANANTHAPURAM- 695 -001. 7. THE NODEL OFFICER FOR STATE GST STATE GOODS AND SERVICES TAX DEPARTMENT, TAX TOWERS, KARAMANA, THIRUVANANTHAPURAM, KERALA- 695 002 R BY SRI.N.NAGARESH, ASSISTANT SOLICITOR GENERAL R BY GOVERNMENT PLEADER DR.THUSHARA JAMES R BY SRI.P.R.SREEJITH,SC,GOODS AND SERVICES TAX NETWORK THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 23-07-2018, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No. 24553 of 2018 (T) APPENDIX PETITIONER'S EXHIBITS EXHIBITP1 TRUE COPY OF THE PROVISIONAL CERTIFICATE OF REGISTRATION UNDER THE ORDINANCE DATED 21-09-2017 EXHIBITP2 TRUE COPY OF THE SPECIMEN INVOICE DATED 19-06-2017 EXHIBIT P2(a) TRUE COPY OF THE SPECIMEN INVOICE DATED 24-06-2017. EXHIBIT P3 COPY OF EXTRACT FROM THE ERROR MESSAGE RECEIVED IN RESPECT OF TAX PAID INVOICES. EXHIBITP3(A) COPY OF EXTRACT FROM PRINT OUT OF THE STATEMENT IN RESPECT OF GOODS IN RESPECT OF WHICH DUTY PAID INVOICES WERE NOT AVAILABLE. EXHIBIT P4 TRUE COPY OF THE E-MAIL DATED 27-12-2017 EXHIBTP5 TRUE COPY OF THE CIRCULAR N.39/13/2018 -GST DATED 03-04-2018 EXHIBTP6 TRUE COPY OF THE NOTIFICATION NO.21/2017 DATED 23-11-2017 EXHIBIT P7 TRUE COPY OF JUDGMENT DATED 14-06-2018 OF THIS HON'BLE COURT IN W.P(C) 17348 OF 2018 EXHIBIT P8 TRUE COPY OF REPRESENTATION DATED 12-07-2018 ADDRESSED TO THE 6TH RESPONDENT. CSS/ DAMA SESHADRI NAIDU, J. ------------------------------------------------ W.P.(C) No.24553 of 2018 ----------------------------------------------- Dated: 23rd July, 2018

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 form within the time, it failed because of some system error. The petitioner, therefore, seeks directions to enable him to take credit of the available input tax.

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

The circular issued by the Government of India 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 -2- 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 -3- petitioners to apply to the Nodal Officer for the issue resolution.

So, in this case also, 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 css/