Garuda Packaging PVT LTD vs. The Assistant Commissioner (State Tax)
Held
The Court held that the petitioner's request merits consideration. Citing the Delhi High Court's decision in UNINAV DEVELOPERS PVT. LTD., V. UNION OF INDIA & OTHERS, which noted that the entire GST system was in a trial and error phase and it would be an undue burden to expect assessees to comply when technical failures prevent system connectivity, the Court found the petitioner's situation analogous. The Delhi High Court had granted relief in similar circumstances, and this Court had also granted relief in a prior case (W.P.no.3298 of 2019) based on the same reasoning. Therefore, the Court directed the respondents to either open the GSTN portal to enable the petitioner to file Form GST TRAN-1 electronically or to accept the manually presented Form GST TRAN-1 on or before September 30, 2019. The petitioner's claim would then be processed in accordance with law.
Facts
The petitioner, engaged in manufacturing FIBC Bags and Plastic Crates, was registered under the Central Excise Department prior to GST. Upon GST implementation on July 1, 2017, the petitioner obtained GST registration. The petitioner sought to transfer unutilized Cenvat Credit and VAT credit as of June 30, 2017, by filing Form TRAN-I. The due date for filing TRAN-I was extended to December 27, 2017. The petitioner attempted to file TRAN-I on December 25, 26, and 27, 2017, but the GSTN portal failed to connect or indicated the due date had passed. Despite multiple communications with GST authorities from April 2018 onwards, including referencing Circular No. 39/13/2018-GST, the issue remained unresolved, locking up Rs. 49,90,830/-. The petitioner filed a writ petition seeking to open the GSTN portal for filing TRAN-I or to permit manual submission.
Key Issues
1. Whether the petitioner can be directed to open the GSTN portal to enable filing of Form GST TRAN-1 electronically, or alternatively, be permitted to submit the form manually, given the technical glitches encountered by the petitioner in filing the form within the extended due date. The petitioner argued that for no fault of its own, technical issues on the web portal prevented it from filing TRAN-I within the extended due date. It relied on decisions from the Madras High Court in Tara Exports v. The Union of India & Others and a previous decision of the same High Court in W.P.no.3298 of 2019, which granted relief in similar circumstances. The respondents, represented by the learned Government Pleader, argued that the petitioner was lax and did not avail the extended time, and therefore, is not entitled to equitable relief.
Sections Cited
CGST Act, 2017
AI-generated summary — verify with the full judgment below
THE HON’BLE SRI JUSTICE M.SEETHARAMA MJRTI AND THE HON’BLE Ms. JUSTICE J.UMA DEVI
Writ Petition no.11457 of 2019
ORDER: (Per Hon’ble Sri Justice M. Seetharama Murti)
This writ petition, under Article 226 of the Constitution of India, is filed seeking verbatim the following relief: ‘…to issue an appropriate writ, order or direction in the nature of writ of mandamus directing the respondents to open the GSTN portal and enable petitioner to file the TRAN-I and transfer the credit to GST or alternatively, in the event that the respondents are not able to pen the GSTN portal, the respondents may be directed to accept the GST TRAN-I manually and allow the credit and permit the petitioner to utilize the said credit for payment of GST tax and pass such further orders in the interests of justice.’
We have heard the submissions of Sri C.V.Narasimham, learned counsel appearing for the writ petitioner; of learned Assistant Solicitor General of India, appearing for the respondents 1 to 6; and, of the learned Government Pleader for Commercial taxes appearing for the 7th respondent. We have perused the material record.
The case of the writ petitioner is th
The judgment continues below.
Read the full judgment
A free account opens 10 full GST judgments a month (one account works on both bharattax.net and this site). Re-reading one you have already opened does not count again.
The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.
Reproduced from the public record of the Andhra Pradesh High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.