Kamla Krishi Kendra vs. The Union Of INDIA

CWJC/15191/2019HC PatnaGSTCNR BRHC01074775201929 June 2021Bench: THE CHIEF JUSTICE -,MR. JUSTICE S. KUMAR4 pages

AI SummaryRemanded

Facts

The petitioner, Kamla Krishi Kendra, a partnership firm, sought a writ of mandamus to direct the Goods and Services Tax Council and other respondents to extend the time for filing GST TRAN-1. The petitioner claimed it could not file the form by the last date, December 27, 2017, due to misinformation spread by the respondents via a newspaper article dated November 10, 2017. The petitioner requested permission to file the complete GST TRAN-1 for necessary transitional credit as per amended Rule 117(1A) of the GST Act. The petitioner also sought a declaration that it should not suffer due to the alleged misinformation. The petitioner's counsel stated they would be content if a direction was issued to the authorities to consider their request.

Held

The Court disposed of the writ petition with specific directions. It directed the petitioner to file a representation before the concerned authorities within four weeks. These authorities were then directed to consider and decide the representation expeditiously, preferably within four weeks thereafter, in accordance with the law. The Court explicitly stated that the issue of delay should not be a hindrance for the authorities in taking appropriate action to enable the petitioner to comply with the formalities. The Court also emphasized that principles of natural justice and an opportunity of hearing must be followed while considering the representation. Liberty was reserved for the petitioner to pursue alternative remedies and to approach the Court again if necessary. The Court clarified that it had not expressed any opinion on the merits of the case, leaving all issues open.

Key Issues

1. Whether the petitioner is entitled to an extension of time for filing GST TRAN-1, considering the alleged misinformation spread by the respondents and the delay in filing. Petitioner's Arguments: The petitioner argued that the delay in filing GST TRAN-1 was not attributable to them but to the respondents' "misdoing" in spreading misinformation through a newspaper article. They contended that they should be permitted to file the form for necessary transitional credit as per amended Rule 117(1A) and should not suffer due to the respondents' actions. They sought a direction for the authorities to consider their request. Revenue/State's Arguments: The judgment does not record any specific arguments made by the respondents. However, the Court's observations indicate a consideration of the delay and the circumstances presented by the petitioner.

Sections Cited

Rule 117(1A)

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

IN THE HIGH COURT OF JUDICATURE AT PATNA Civil Writ Jurisdiction Case No.15191 of 2019 ====================================================== Kamla Krishi Kendra, a partnership firm, having its office at Ramnagar, P.O. and P.S.- Ramnagar, Distt.- West Champaran, through its partner Vinod Sarraf, aged about 59 years (male), son of Mohan Lal Sarraf, resident of Church Road Christian Quarters, P.O.- Bettiah, P.S.- Bettiah Town, Distt.- West Champaran. ... ... Petitioner/s Versus 1. The Union of India through the Secretary, Department of Revenue, Ministry of Revenue, North Block, New Delhi-110001 2. The Goods and Services Tax Council through its Chairperson, 5th Floor, Tower II, Jeevan Bharti Building, Janpath Road, Connaught Place, New Delhi-110001 3. The Commissioner Office of the Commissioner, Central GST and Excise, Central Revenue Building, 4th Floor, Bir Chand Patel Marg, Patna-1 4. The State of Bihar through the Principal Secretary, Department of Commercial Taxes, Govt. of Bihar, New Secretariat, Patna ... ... Respondent/s ====================================================== Appearance : For the Petitioner/s : Mr.Avinash Shekhar, Advocate Mr. Suraj Samdarshi, Advocate Mr. Piyush Ranjan, Advocate For the Respondent/s : Dr. K.N. Singh, ASG Mr. Vikash Kumar, S.C. 11 Mr. Ashok Kumar Agrawal, Advocate ====================================================== CORAM: HONOURABLE THE CHIEF JUSTICE and HONOURABLE MR. JUSTICE S. KUMAR

ORAL JUDGMENT (Per: HONOURABLE THE CHIEF JUSTICE) ===================================================== (The proceedings of the Court are being conducted by Hon’ble the Chief Justice/ Hon’ble Judges through Video

Conferencing

from their

residential offices/residences. Also, the Advocates and the Staffs joined the proceedings through Video Conferencing from their

residences/offices.) Date : 29-06-2021 Petitioner has prayed for the following relief(s):- “i) To issue an appropriate writ, order or 2/4 direction in the nature of mandamus directing the respondent Goods and Services Tax Council to make recommendations to the respondent Commissioner to extend the time period for filing of GST Tran-1 in the case of the petitioner because he could not file GST Tran-1 after the last date i.e. 27.12.2017. ii) To issue an appropriate writ, order or direction in the nature of direction to respondents to permit the petitioner to file his complete GST TRAN-1 for the necessary transaction credit as per amended Rule 117(1A) of the GST ACT. iii) To issue an appropriate writ, order or direction in the nature of declaration that the petitioner cannot be allowed to suffer on account of the misinformation spread by the respondents vide newspaper article dated 10.11.2017. iv) To grant any other relief or reliefs for which the petitioner is found entitled in the facts and circumstances of the case. Learned counsel for the petitioner prays that petitioner shall be content if a direction is issued to the respondent authorities to consider the petitioner’s request which the petitioner shall be making, within four weeks, with regard to the prayer, subject matter of the present writ petition. The delay of one day in filing the return is not at all attributable to the petitioner, for it is only on account of the respondents mi oing in spreading the misinformation as reported in Newspaper dated 10th of November, 2017. Also, we 3/4 are of the view that the Revenue ought to be more indulgent, more so during the time of current pandemic Covid-19. As such, as prayed for, the petition is disposed of in the following terms: (a) The petitioner shall file a representation before the authorities concerned within a period of four weeks from today, whereafter the same shall be considered and decided by the authorities concerned, per law, expeditiously and preferably within a period of four weeks thereafter. (b) The issue of delay shall not come in the way of the authorities to take appropriate action, enabling the petitioner to comply with the formalities. (c) Needless to add, while considering such representation, principles of natural justice shall be followed and due opportunity of hearing afforded to the parties. (d) Equally, liberty is reserved to the petitioner to take recourse to such alternative remedies as are otherwise available in accordance with law. (e) We are hopeful that as and when petitioner takes recourse to such remedies, as are otherwise available in law, before the appropriate forum, the same shall be dealt with, in accordance with law and with reasonable dispatch.

4/4 (f) Liberty reserved to the petitioner to approach the Court, if the need so arises on the same and subsequent cause of action. (g) We have not expressed any opinion on merits. All issues are left open. (h) The proceedings, during the time of current Pandemic- Covid-19 shall be conducted through digital mode, unless the parties otherwise mutually agree to meet in person i.e. physical mode. The petition stands disposed of in the aforesaid terms. Interlocutory Application(s), if any, stands disposed of.

Sujit/PKP (Sanjay Karol, CJ) ( S. Kumar, J) AFR/NAFR CAV DATE Uploading Date 06.07.2021 Transmission Date

Reproduced from the public record of the Patna High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.