M/S.As Steel Traders vs. The Union Of INDIA
Held
The Court held that the Joint Commissioner's impugned order dated 27.06.2018 was flawed because it did not examine the petitioners' specific claim of attempting to file FORM GST TRAN-1 on 27.12.2017. Instead, it relied on general statistics and rejected the plea of server error. The Court noted that the subsequent amendment to Rule 117 of the CGST Rules (Rule 117(1A)) and the Commissioner's Order No.4/2018-GST dated 17.09.2018, which extended the filing period for those facing technical difficulties, implicitly acknowledged that such issues did occur. The Court found it unnecessary to delve into whether the petitioners' inability was due to technical glitches, as this was a matter for the relevant authority to examine. The Court set aside the impugned order, directing that the petitioners could seek recommendation from the GST Council and satisfy the authorities that their failure to file by 27.12.2017 was due to a systems or server error, in accordance with the amended rules and the subsequent extension order.
Facts
The petitioners, in Writ Petition Nos. 32259 and 33573 of 2018, sought to file FORM GST TRAN-1 to claim input tax credit for pre-GST tax paid. The Joint Commissioner, Visakhapatnam, by an order dated 27.06.2018, rejected their request. The Government of India, through Order No.09/2017-GST dated 15.11.2017, had extended the deadline for submitting FORM GST TRAN-1 to 27.12.2017. A dispute arose regarding whether the petitioners attempted to file by the deadline. The Joint Commissioner rejected the plea of server error, citing statistics of successful filings during the period. Subsequently, Rule 117 of the CGST Rules was amended by Notification No.48/2018 dated 10.09.2018, allowing extensions for those facing technical difficulties. The Commissioner (GST) then issued Order No.4/2018-GST on 17.09.2018, extending the deadline to 31.01.2019 for eligible registered persons.
Key Issues
1. Whether the Joint Commissioner erred in rejecting the petitioners' request to file FORM GST TRAN-1 without examining their claim of attempting to file by the due date of 27.12.2017, and instead relying on general statistics, thereby violating principles of natural justice and the subsequent amendments to Rule 117 of the CGST Rules? (Mixed question of law and fact, concerning Rule 117 of the CGST Rules, 2017 and Order No.09/2017-GST). Contentions: Petitioner: Argued that they had attempted to file their return on 27.12.2017. They contended that the impugned order failed to examine this specific claim and relied on general statistics, overlooking the possibility of technical glitches. They also highlighted the subsequent amendment to Rule 117 and the extension order, which recognized that some dealers faced difficulties. They submitted that their representation to the GST Council was pending. Revenue: Drew attention to a letter from the petitioners dated 19.02.2018, suggesting they admitted to attempting to file only on 28.12.2017, thus missing the deadline. They also pointed to the Joint Commissioner's finding that statistics showed other returns were filed successfully between 24.12.2017 and 27.12.2017, indicating no widespread technical glitch.
Sections Cited
Rule 117, Section 168
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HON’BLE SRI JUSTICE RAMESH RANGANATHAN AND HON’BLE SMT JUSTICE KONGARA VIJAYA LAKSHMI
Writ Petition Nos.32259 and 33573 of 2018 COMMON ORDER: {Per Hon’ble Sri Justice Ramesh Ranganathan}
Heard Sri K.S.Ravi Shankar, learned counsel appearing on behalf of the petitioners, and Sri B.Narasimha Sarma, learned Senior Standing Counsel for CGST and, with their consent, both these writ petitions are disposed of at the stage of admission.
The dispute, in both these writ petitions, relate to the validity of the order passed by the Joint Commissioner, Visakhapatnam on 27.06.2018 rejecting the petitioners’ request to receive their return in FORM GST TRAN-1 which would enable them to claim input tax credit for the tax paid prior to the introduction of GST. By Order No.09/2017- GST dated 15.11.2017, the Government of India, in the exercise of the powers conferred by Rule 117 of the Central Goods and Services Tax Rules, 2017 (for short “the CGST Rules”) read with Section 168 of the Central Goods and Services Tax Act, 2017 (for short “the CGST Act”), on the recommendation of the GST Council and in supersession of its earlier Order No.07/2017-GST dated 28.10.2017, extende
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