P.Sankara Narayanan vs. GST Council - Kerala High Court, 11 July 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 11TH DAY OF JULY 2018 / 20TH ASHADHA, 1940 WP(C).No. 9100 of 2018 PETITIONER : P. SANKARA NARAYANAN, PROPRIETOR, C.B.FURNITURE AND INTERIOUS, NOORANAD, ALEPPEY. BY ADVS.SRI.ANIL D. NAIR SRI.R.SREEJITH SRI.P.JINISH PAUL KUM.MEKHALA M.BENNY SRI.ASISH MOHAN SRI.G.KRISHNAKUMAR (MALLYA) SRI.ACHYUT K PADMARAJ RESPONDENTS : 1. GST COUNCIL, REPRESENTED BY ITS REVENUE SECRETARY AND EX-OFFICIO SECRETARY TO THE GST COUNCIL SECRETARIATE, 5TH FLOOR, TOWER II, JEEVAN BHARTI BUILDING, JANPATH ROAD, CANNAUGHT PALACE, NEW DELHI-100001. 2. COMMISSIONER, OFFICE OF THE GST COUNCIL SECRETARIAT, 5TH FLOOR, TOWER II, JEEVAN BHARTI BUILDING, JANPATH ROAD, CANNAUGHT PALACE, NEW DELHI-100001. 3. THE COMMISSIONER OF STATE TAX, TAX TOWER, KILLIPPALAM, KARAMANA P. O., THIRUVANANTHAPURAM. *ADDL. 4TH RESPONDENT IMPLEADED: 4. THE DEPUTY COMMISSIONER/NODAL OFFICER, OFFICE OF THE COMMISSIONER OF CENTAL GST & CENTAL EXCISE, GST BHAVAN, PRESS CLUB ROAD, STATUE, THIRUVANANTHAPURAM-695001. WP(C).No. 9100 of 2018 * ADDL. 4TH RESPONDENT IS IMPLEADED AS PER ORDER DATED 11.7.2018 IN I.A.12153/2018. R1-R2 BY ADV. SRI.N.NAGARESH, ASSISTANT SOLICITOR GENERAL R3 & R4 BY GOVERNMENT PLEADER SRI.V.K.SHAMSUDHEEN THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 11-07-2018, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: EL WP(C).No. 9100 of 2018 (J) APPENDIX PETITIONER(S)' EXHIBITS EXHIBIT P1 A COPY OF THE PRESS RELEASE DATED 10.11.2017 MADE BY THE IST RESPONDENT. EXHIBIT P2 THE SCREEN SHOT TO THE WEBSITE OF THE IST RESPONDENT STATING EXTENSION OF DATE FOR FILLING TRAN-1 EXHIBIT P3 A COPY OF THE ORDER NO.10/2017 GST DATED 15.11.2017 ISSUED BY THE 2ND RESPONDENT. RESPONDENT(S)' EXHIBITS NIL TRUE COPY P.S. TO JUDGE EL 23.7.2018 DAMA SESHADRI NAIDU, J. ================================== W.P.(C). No.9100 of 2018 ====================================== Dated this the 11th day of July, 2018

JUDGMENT The petitioner was a registered dealer under the Kerala Value Added Tax Act, now migrated to the Goods and Services Tax regime. To use the input tax available to his credit at the time of migration, the petitioner had to upload FORM GST TRAN-1 within the stipulated time. He asserts that though he attempted to upload it within the time, he 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 as well as the learned Government Pleader, besides perusing the record.

-2-

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

-3- 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 additional 4th respondent for the issue resolution.

So, in this case also, the petitioner may apply to the additional 4th respondent, the Nodal Officer. The petitioner applying, the Nodal Officer will look into the -4- 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 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 him to take credit of the input tax available at the time of migration. With these directions, I dispose of the Writ Petition. DAMA SESHADRI NAIDU JUDGEP.A to Judge