M/S. M.G.Shahani & Company (Bombay) PVT. LTD. vs. The Commissioner Of State GST - 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. 22055 of 2018 PETITIONER(S) M/S. M.G.SHAHANI & COMPANY (BOMBAY) PVT. LTD. ASHOK BUILDING, 2ND FLOOR, MAIN ROAD, OTTAPPALAM, PALAKKAD, REPRESENTED BY ITS MANAGER, M.UNNIKRISHNAN. BY ADVS.SRI.HARISANKAR V. MENON SMT.MEERA V.MENON SMT.K.KRISHNA RESPONDENT(S): 1. THE COMMISSIONER OF STATE GST TAX TOWERS, KARAMANA, KILLIPPALAM, THIRUVANANTHAPURAM - 695 002. 2. GOODS AND SERVICES TAX NETWORK PVT.LTD. EAST WING, 4TH FLOOR, WORLD MARK-1, AEROCITY, NEW DELHI-110 037, REPRESENTED BY ITS MANAGING DIRECTOR. 3. GOODS AND SERVICE TAX COUNCIL 5TH FLOOR, TOWER-II, JEEVAN BHARATI BUILDING, JANPATH ROAD, CONNAUGHT PLACE, NEW DELHI-110 001, REPRESENTED BY ITS CHAIRMAN. R3 BY ADV. SRI.N.NAGARESH, ASSISTANT SOLICITOR GENERAL R2 BY ADV. SRI.P.R.SREEJITH,SC,GOODS AND SERVICES TAX NETWORK R BY ADV. SRI. SHAMSUDHEEN,GOVERNMENT PLEADER THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 11-07-2018, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No. 22055 of 2018 (F) APPENDIX PETITIONER(S)' EXHIBITS EXHIBIT-P1: COPY OF STATEMENT GIVING THE DETAILS OF THE STOCK OF THE PETITIONER. EXHIBIT-P2: COPY OF LETTER SUBMITTED BY THE PETITIONER BEFORE THE 1ST RESPONDENT 02.04.2018. EXHIBIT-P2(a): COPY OF LETTER SUBMITTED BY THE PETITIONER BEFORE THE 1ST RESPONDENT 21.04.2018. EXHIBIT-P2(b): COPY OF LETTER SUBMITTED BY THE PETITIONER BEFORE THE 1ST RESPONDENT 23.04.2018. EXHIBIT-P3: COPY OF REPLY ISSUED BY THE DEPUTY COMMISSIONER, PALAKKAD 26.04.2018. TRUE COPY P.S. TO JUDGE. acd DAMA SESHADRI NAIDU, J. ------------------------------------------- W.P.(C)No.22055 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, the learned Government Pleader, as well as the learned Standing Counsel for respondents 2 and 3, besides perusing the record.

The Government of India has issued a circular 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 for the issue resolution.

So, in this case also, the petitioner may apply to the 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 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, JUDGE. acd