Darsh Pharmachem PVT. LTD. vs. Superintendent, Central GST

Held

The Court held that the writ-applicant is entitled to the benefit of Order No. 01/2020-GST dated February 7, 2020. This order, issued under Rule 117(1A) of the CGST Rules, 2017, extends the time limit for submitting Form GST TRAN-1 till March 31, 2020, for registered persons who could not submit the declaration by the due date due to technical difficulties on the common portal, and whose cases have been recommended by the Council. The Court reasoned that since the TRAN-1 could not be filed on account of technical glitches, the petitioner should be permitted to file it. The ratio decidendi is that genuine technical difficulties on the GST portal, preventing timely filing of TRAN-1, warrant an extension of time for claiming transitional credit, as provided by subsequent government orders.

Facts

The petitioner, Darsh Pharmachem Pvt. Ltd., a manufacturer of pharmaceutical products, sought to upload Form TRAN-1 under Section 140 of the CGST Act, 2017, to claim Input Tax Credit (ITC) on the closing balance of Central Excise Duty (Rs. 19,58,619) and VAT (Rs. 8,40,911) from their pre-GST returns. However, the petitioner encountered technical glitches on the GST common portal, preventing the successful upload of TRAN-1. The petitioner had previously communicated this issue to the Assistant Commissioner, Division-X, CGST & Excise, Nadiad, Vadodara North, on February 20, 2018. The petitioner contended that the inability to file TRAN-1 was due to no fault of their own.

Key Issues

1. Whether the petitioner is entitled to file Form TRAN-1 for claiming transitional credit of Central Excise Duty and VAT, despite missing the original due date, due to technical glitches on the GST common portal, under Section 140 of the CGST Act, 2017 and Rule 117 of the CGST Rules, 2017? Petitioner's Argument: The petitioner argued that they should be permitted to file Form TRAN-1 as the delay was solely attributable to technical difficulties on the GST common portal and not due to any fault on their part. They relied on their application dated February 20, 2018, to the Assistant Commissioner highlighting the issue. Revenue's Argument: The judgment records no specific argument from the revenue or state. However, the court considered Order No. 01/2020-GST issued by the Government of India, Ministry of Finance, which provides an extension for submitting TRAN-1 in cases of technical difficulties.