Sevenseas Exporters vs. The Union Of INDIA - Kerala High Court, 05 July 2018

Cause title — parties, addresses and appearances

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR. JUSTICE DAMA SESHADRI NAIDU THURSDAY, THE 5TH DAY OF JULY 2018 / 14TH ASHADHA, 1940 WP(C).No. 22275 of 2018 PETITIONER SEVENSEAS EXPORTERS, 26/9, AKG ROAD, EDAPPALLY TOLL, ERNAKULAM-682024, REPRESENTED BY ITS MANAGING PARTNER B.BALACHANDRAN. BY ADV.SMT.BLOSSOM MATHEW RESPONDENTS: 1. THE UNION OF INDIA, REPRESENTED BY ITS SECRETARY TO GOVERNMENT, MINISTRY OF FINANCE, DEPARTMENT OF REVENUE, CENTRAL BOARD OF EXCISE AND CUSTOMS, NEW DELHI-110001. 2. THE GOVT. OF KERALA, REPRESENTED BY ITS PRINCIPAL SECRETARY, MINISTRY OF FINANCE, STATE GOODS AND SERVICE TAX DEPARTMENT, THIRUVANANTHAPURAM-695001. 3. GOODS AND SERVICE TAX COUNCIL, REPRESENTED BY ITS CHAIRPERSON, 5TH FLOOR, TOWER II, JEEVAN BHARATI BUILDING, JANPATH ROAD, CONNAUGHT PLACE, NEW DELHI-110001. 4. GOODS AND SERVICE TAX NETWORK PVT. LTD., REPRESENTED BY ITS MANAGING DIRECTOR, EAST WING, 4TH FLOOR, WOLD MARK-1, AEROCITY, NEW DELHI-110037. 5. COMMISSIONER OF CENTRAL GOODS AND SERVICE TAX, DEPARTMENT OF REVENUE, CENTRAL BOARD OF EXCISE AND CUSTOMS, NEW DELHI-110001. 6. THE COMMERCIAL TAX OFFICER, STATE GOODS AND SERVICES TAX DEPARTMENT, 1ST CIRCLE, KALAMASSERY AT KAKKANADU, CIVIL STATION, COCHIN-682030. R1 & 3 BY ADV. SRI.N.NAGARESH, ASSISTANT SOLICITOR GENERAL R BY GOVERNMENT PLEADER SHAMSUDHEEN V.K. R BY SREELAL N. WARRIER, SC, CENTRAL BOARD OF EXCISE &AMP; CUSTOMS THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 05-07-2018, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No. 22275 of 2018 (H) APPENDIX PETITIONER'S EXHIBITS EXHIBIT P1 TRUE COPY OF THE CERTIFICATE OF REGISTRATION UNDER THE KVAT ACT, DATED 01-07-2008. EXHIBIT P2 TRUE COPY OF MONTHLY RETURN FILED UNDER KVAT ACT FOR THE MONTH OF JUNE, 2017 DATED 25-07-2017. EXHIBIT P3 TRUE COPY OF CERTIFICATE OF PROVISIONAL REGISTRATION DATED 28-06-2017, ISSUED UNDER GOODS AND SERVICES TAX ACT, 2017, WHILE MIGRATING FROM KVAT ACT. EXHIBIT P4 TRUE COPY OF REFUND WORK SHEET FOR THE FINANCIAL YEAR 2017-2018 UNDER KVAT ACT. EXHIBIT P5 TRUE COPY OF ORDER NO.09/2017-GST DATED 15-11-2017 ISSUED BY THE 5TH RESPONDENT, EXTENDING THE PERIOD FOR SUBMITTING FORM GST TRAN-1 TILL 27TH DECEMBER 2017 AND THE PRESS RELEASE ISSUED ON 12-12-2017. EXHIBIT P6 TRUE COPY OF FORM NO.21 C DATED 26-03-2018. EXHIBIT P6(a) TRUE COPY OF THE RECEIPT DATED 26-03-2018, ISSUED BY THE OFFICE OF THE 6TH RESPONDENT ACCEPTING EXT.P6. EXHIBIT P7 TRUE COPY OF THE CIRCULAR NO.10/2018, DATED 23-05-2018 ISSUED BY THE 2ND RESPONDENT. EXHIBIT P8 TRUE COPY OF JUDDGMENT DATED 24-01-2018 PASSED BY THE HON'BLE HIGH COURT AT ALLAHABAD IN WRIT TAX NO.67 OF 2018. EXHIBIT P8(a) TRUE COPY INTERIM ORDER IN WRIT PETITION NO.2230/2018 DATED 06-02-2018 PASSED BY THE HON'BLE HIGH COURT AT MUMBAI. CSS/ Dama Seshadri Naidu, J. --------------------------------------------------- WPC No.22275 of 2018 --------------------------------------------------- Dated this the 5th 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 technical problem. The petitioner, therefore, seeks direction to enable him to take credit of the available input tax.

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

The circular issued by the Government of India for WPC No.22275 of 2018 2 “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

WPC No.22275 of 2018 3 this technical glitch and approached this Court. Both the learned counsel submit that this Court on earlier occasions permitted the petitioner 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.

To set a time frame, 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 css/