Sikka Motors PVT. LTD. vs. Commissioner, Central Goods And Service Tax & Ors. & Ors.

W.P.(C)/8971/2019HC DelhiGSTCNR DLHC01033905201920 August 2019Bench: HON'BLE DR. JUSTICE S.MURALIDHAR,HON'BLE MR. JUSTICE TALWANT SINGH4 pages

For Petitioner: Mr. Ruchir Bhatia, AdvocatesFor Respondent: Mr. Harpreet Singh, Senior Standing Counsel with Ms. Shivani Mathur for R-1&2

AI SummaryPartly Allowed

Held

The Court acknowledged that the GST system is still in a trial and error phase and that technical glitches can prevent assessees from complying with the law. The Court directed the respondents to process the petitioner's representation and either reflect the ITC claim or communicate the reasons for inability to do so.

Facts

The petitioner uploaded its claim for Input Tax Credit (ITC) in Form TRAN-1 on time, but due to technical glitches, it was unable to claim the ITC. Subsequently, the petitioner was asked to reverse the claim and was informed that the ITC was recoverable with interest and penalty.

Key Issues

Whether the petitioner should be penalized for technical glitches in the GST system that prevented them from claiming ITC, and if the ITC claim should be reflected in the electronic credit ledger.

Sections Cited

Form TRAN–1

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Cause title — parties, addresses and appearances

W.P.(C) 8971/2019 Page 1 of 4 $~67 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 8971/2019 SIKKA MOTORS PVT. LTD. ..... Petitioner Through: Mr. Ruchir Bhatia, Advocates versus COMMISSIONER, CENTRAL GOODS AND SERVICE TAX & ORS. ..... Respondents Through: Mr. Harpreet Singh, Senior Standing Counsel with Ms. Shivani Mathur for R-1&2 CORAM: JUSTICE S.MURALIDHAR JUSTICE TALWANT SINGH

O R D E R %

20.08.

2019

CM APPL. 37004/2019 (Exemption)

Allowed, subject to all just exceptions.

W.P.(C) 8971/2019 & CM APPL. 37005/2019(direction)

Notice. Respective counsel for the Respondents as noted above accepts notice.

This is one other case, where on account of technical glitches, a registered dealer is unable to claim input tax credit (ITC) which works out to Rs.3,82,08,278.53 in Form TRAN–1. 4. The Petitioner states that it uploaded its claim for ITC on account of W.P.(C) 8971/2019

unsold stock as on 30th June 2017 in Form TRAN 1 on 10th October, 2017. A c

The judgment continues below.

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