Shatabdi Switchgears And Controls PVT .LTD vs. Union Of INDIA & Ors.
Held
The Court allowed the writ petition. It held that the factual position in the present case was similar to several previous decisions of the Court, including M/s Blue Bird Pure Pvt. Ltd. The Court found that the Petitioner's situation, where it was unable to file Form TRAN-1 due to technical glitches, was covered by these precedents. The Court reasoned that in such circumstances, it was appropriate to provide relief to the Petitioner. The Court directed the respondents to either open the online portal to enable the Petitioner to file Form TRAN-1 electronically or to accept the same manually on or before December 9, 2019. The Court further directed the respondents to process the Petitioner's claim in accordance with law once Form GST TRAN-1 is filed. The issue regarding Rule 117 being ultra vires was not expressly decided as the Petitioner offered to withdraw this challenge if relief was granted on the filing of TRAN-1, and the Court granted the relief sought regarding the filing of the form.
Facts
The petitioner, Shatabdi Switchgears and Controls Pvt. Ltd., engaged in industrial automation and low voltage switchgear products, sought to transition input tax credit on stock held as of June 30, 2017, under Section 140(3) of the CGST Act. The last date for filing Form TRAN-1 was December 27, 2017. The petitioner claims it made multiple unsuccessful attempts to upload the form due to technical glitches on the Common Portal. Despite representations made to Respondent No. 3 on December 28, 2017, and subsequent reminders following a circular extending the filing date, no action was taken. The respondents failed to file a counter-affidavit despite repeated opportunities. The petitioner filed a writ petition seeking directions to open the portal for filing Form TRAN-1 or to accept it manually, and alternatively, to declare Rule 117 of the CGST Rules, 2017, ultra vires Sections 140 and 174 of the CGST Act, 2017.
Key Issues
1. Whether the Petitioner is entitled to a writ of mandamus directing the Respondents to open the online portal for filing its claim of tax credit on stock held on 30.06.2017 in Form TRAN-1, or alternatively, to accept the claim manually, given the alleged technical glitches preventing timely filing. This issue turns on the interpretation and application of Section 140 of the CGST Act, 2017, and Rule 117 of the CGST Rules, 2017, in light of the Petitioner's inability to file due to system errors. 2. Whether Rule 117 of the CGST Rules, 2017, is ultra vires Section 140 and Section 174 of the CGST Act, 2017. This question concerns the legislative competence and validity of the subordinate legislation in relation to the parent Act. Petitioner's arguments: The Petitioner contended that it was unable to file Form TRAN-1 due to technical glitches beyond its control. It relied on decisions of the Delhi High Court in M/s Blue Bird Pure Pvt. Ltd. vs. Union of India and Ors., and Sare Realty Projects Private Limited vs. Union Of India, where similar reliefs were granted. The Petitioner also offered to drop its challenge to the statutory provisions if permitted to re-file TRAN-1. Respondents' arguments: The respondents did not file a counter-affidavit and therefore, no arguments were recorded on their behalf.
Sections Cited
Section 140, Section 174, Rule 117
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W.P.(C) 3961/2019 $~21 * IN THE HIGH COURT OF DELHI AT NEW DELHI
Date of Decision: 21.11.2019
+ W.P.(C) 3961/2019
SHATABDI SWITCHGEARS AND CONTROLS PVT .LTD ..... Petitioner Through: Mr. Ruchir Bhatia, Sr. Standing counsel.
versus
UNION OF INDIA & ORS.
..... Respondents Through: Mr. Abhinav S. Raghvendra, Sr. Counsel for UOI/R-1. Mr. Anuj Aggarwal with Mr. Ankit Monga, Advs. for R-3. CORAM: HON'BLE MR. JUSTICE VIPIN SANGHI HON'BLE MR. JUSTICE SANJEEV NARULA
VIPIN SANGHI, J (Oral):
Despite repeated opportunities, no counter affidavit has been filed on behalf of the respondents. We therefore, close the right of the respondent to file counter affidavit.
The present petition under Article 226 of the Constitution of India seeks the following reliefs:
W.P.(C) 3961/2019 “i) Issue a writ of mandamus or any other writ, order or direction in the nat
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