Skh Sheet Metals Components PVT LTD vs. Union Of INDIA & Ors.

W.P.(C)/13151/2019HC DelhiGSTCNR DLHC01001256201916 June 2020Bench: HON'BLE MR. JUSTICE MANMOHAN,HON'BLE MR. JUSTICE SANJEEV NARULA32 pages

For Petitioner: Mr. Dharnendra K. Rana, Advocate with Ms. Anshika Aggarwal, AdvocateFor Respondent: Mr. Sreemithun, Advocate for UOI. Mr. Harpreet Singh, Standing Counsel for GST

AI SummaryAllowed

Held

The Court held that the restriction preventing the petitioner from reclaiming the shortfall due to a 'human error' was unreasonable and arbitrary, violating Article 14 of the Constitution. The Court found the respondents' stand illogical and lacking fairness.

Facts

The petitioner sought to transition Input Tax Credit (ITC) of Rs. 5,51,33,699/- by updating their electronic credit ledger or revising Form GST TRAN-1. They encountered issues with the GST portal where a significant portion of their pre-GST credit was not reflected or was shown as blocked credit.

Key Issues

Whether the petitioner should be allowed to revise Form GST TRAN-1 to transition their full ITC despite a discrepancy arising from human error, and if the respondents' rigid stance is justifiable.

Sections Cited

Section 140, Rule 117

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Cause title — parties, addresses and appearances

W.P.(C) 13151/2019 Page 1 of 32 * IN THE HIGH COURT OF DELHI AT NEW DELHI Reserved on: 29.05.2020 Pronounced on: 16.06.2020 + W.P.(C) 13151/2019 SKH SHEET METALS COMPONENTS ..... Petitioner Through: Mr. Dharnendra K. Rana, Advocate with Ms. Anshika Aggarwal, Advocate. versus UNION OF INDIA & ORS. ..... Respondents Through: Mr. Sreemithun, Advocate for UOI. Mr. Harpreet Singh, Standing Counsel for GST. CORAM: HON’BLE MR. JUSTICE MANMOHAN HON’BLE MR. JUSTICE SANJEEV NARULA

J U D G M E N T SANJEEV NARULA, J

The Petitioner has invoked Article 226 of the Constitution of India for seeking a writ of mandamus directing the Respondents to allow it to avail the short transitioning of Input Tax Credit („ITC‟) amounting to Rs. 5,51,33,699/- by either updating the electronic credit ledger at their back end,in accord with the details of credit submitted by the Petitioner or allowing them to revise the Form GST TRAN-1, in conformity with the returns filed under the existing laws that stan

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