M/S. S S Mirje And Company vs. The Union Of INDIA Thru The Secretary,Ministry Of Law And Justice And Ors

Held

The Court disposed of the writ petitions in terms of a previous order dated April 13, 2022, passed by the Aurangabad Bench of the Bombay High Court in Ambica Fertilizers (supra) and connected writ petitions. The Court allowed the petitioners to file and correct TRAN-1 and TRAN-2 Forms. If online filing was not possible, manual filing was permitted. The Court directed that these forms should be filed and/or corrected preferably within three weeks. The jurisdictional assessing authority was directed to pass orders on these forms as per the observations in the aforementioned order, preferably within six weeks. The Court further clarified that any show cause notices issued during adjudication should also consider the directions and observations made in the present order. The ratio decidendi is that in cases of technical glitches preventing timely filing of TRAN-1, and where the petitioner is otherwise eligible for credit, the Court may grant an opportunity to file or correct the form, considering the principles of justice, even if statutory timelines have expired, by directing the authority to consider the claims.

Facts

Numerous petitioners, including M/s. Ashoka Buildcon Ltd., Hira Movers, and M.M. Polymers Pvt. Ltd., filed writ petitions before the Bombay High Court. The core issue in these petitions was the inability of the petitioners to file or amend their TRAN-1 Forms due to alleged technical glitches on the GST portal. The petitioners sought an opportunity to rectify these forms to claim transitional input tax credit. The respondents, Union of India and others, contended that the time period prescribed for filing TRAN-1 under Section 117 of the CGST Act was mandatory and had expired, thus barring any further claims or amendments.

Key Issues

1. Whether the Petitioners are entitled to an opportunity to file or amend their TRAN-1 Forms, despite the expiry of the prescribed time limit, in cases where technical glitches prevented timely filing or revision? The Petitioners argued that human errors should be correctable and that if technical glitches prevented the filing or amendment of TRAN-1, they should be granted an opportunity to do so. They relied on the Bombay High Court's judgment in Heritage Lifestyles and Developers Pvt. Ltd. vs. The Union of India & Ors. The Petitioners also referred to a recent judgment of the Aurangabad Bench of the Bombay High Court in Writ Petition No. 1690 of 2019 and connected matters. The Revenue (Union of India and others) contended that the period prescribed under Section 117 of the CGST Act is mandatory and that no right exists to file or amend TRAN-1 after the stipulated time has elapsed. They relied on the Bombay High Court's judgment in NELCO Ltd. vs. Union of India and Ors.