Asian Polymers vs. Union Of INDIA & Ors.

Held

The Court held that the factual position in the present case was not different from that in M/s Blue Bird Pure Pvt. Ltd. (supra), a decision previously rendered by the same Court. The Court found that the petitioner's difficulty in filling the form was genuine and should not prevent their claim from being examined. The Court noted that in similar cases, directions were issued to either open the portal for electronic filing or accept manual filing of Form TRAN-1. The Court was satisfied that the petitioner's failure to fill the data correctly was inadvertent and that the respondents ought to have provided a facility for rectification of bona fide errors. The Court observed that the system's provision for revision coincided with the last date for filing, rendering the facility impractical. Therefore, the Court allowed the petition, directing the respondents to either open the online portal for the petitioner to file Form TRAN-1 electronically or to accept the same manually on or before December 9, 2019. The respondents were further directed to process the petitioner's claim in accordance with law once the form was filed. The issue regarding Rule 117 being ultra vires was not expressly decided as the primary relief was granted based on the technical glitches argument.

Facts

The petitioner, Asian Polymers, engaged in the sale and purchase of plastic granules, sought to file Form GST TRAN-1 to claim transitional credit of excise duty under Section 140(3) of the CGST Act. The initial deadline for filing was 90 days, extended multiple times, with the last extended date being December 27, 2017. The petitioner claims it could not file the form due to technical glitches on the GST portal, despite repeated attempts. They submitted representations to the respondents, including a request on May 24, 2018, and a reminder on August 31, 2018. The respondents, in their counter-affidavit, denied receiving any representation from the petitioner and stated that the petitioner had not established experiencing technical glitches. They also pointed out that Circular No. 39/13/2018-GST, which allowed filing for those facing technical glitches, was for identified taxpayers who made a bona fide attempt.

Key Issues

1. Whether the Petitioner is entitled to a direction to open the GST portal for filing Form TRAN-1, or to accept it manually, due to alleged technical glitches preventing timely filing, thereby enabling the claim of tax credit on stock held on June 30, 2017, under Section 140(3) of the CGST Act, 2017? 2. Whether Rule 117 of the CGST Rules, 2017, is ultra vires Section 140 and Section 174 of the CGST Act, 2017? Petitioner's arguments: The Petitioner contended that they could not file Form TRAN-1 within the stipulated period due to system failures beyond their control. They relied on several High Court decisions, including M/s Blue Bird Pure Pvt. Ltd. vs. Union of India and Sare Realty Projects Private Limited vs. Union Of India, where similar reliefs were granted to taxpayers facing technical difficulties. They argued that the system was in a 'trial and error phase' and that genuine difficulties should not preclude them from availing credit. Respondents' arguments: The Respondents argued that a reasonable time was provided for filing TRAN-1, and the limitation imposed is a reasonable restriction. They claimed no representation was received from the petitioner and that the petitioner had not established experiencing technical glitches. They stated that Circular No. 39/13/2018-GST was only for identified taxpayers who made a bona fide attempt but failed due to technical glitches, which the petitioner had not proven.