Jodhpur Truck PVT. LTD. vs. Union Of INDIA

Held

The Court held that for an assessee to be permitted to furnish an offline GST TRAN-1 form under sub-rule (1A) of Rule 117, three conditions must be met: (i) the failure to upload the form must be on account of technical glitches on the common portal; (ii) such an attempt must have been made during the currency of the transitional period, i.e., before December 22, 2017; and (iii) the GST Council must have made a recommendation for such an extension after being satisfied about the failure. The Court found that the petitioner had not asserted when the attempt to upload was made nor provided documentary evidence to substantiate it, with averments indicating the first attempt was on August 23, 2019. The Court distinguished the cited interim orders and judgments, noting that in those cases, the petitioners had provided evidence of genuine efforts and technical flaws within the prescribed period. The Court disposed of the writ petition with a direction to the respondents to permit the petitioner to submit the offline GST TRAN-1 form, subject to the petitioner furnishing proof of attempting to upload it prior to December 27, 2017, and that such attempt failed due to a technical fault. The petitioner would also need to submit a certificate or recommendation from the GST Council. If these conditions were met and the form was filed by December 31, 2019, it would be accepted. The petitioner was directed to apply to the GST Council within 15 days for the requisite certificate.

Facts

The petitioner, Jodhpur Truck Pvt. Ltd., sought a direction from the Rajasthan High Court to accept its GST TRAN-1 form offline or by opening the portal. The petitioner argued that amendments to the Central Goods and Service Tax Rules, 2017, extended the due date for furnishing offline GST TRAN-1 forms to December 31, 2019. They relied on interim orders from the Jaipur Bench of the same High Court and various judgments from other High Courts that directed the acceptance of offline returns due to technical glitches. The respondents contended that the relevant sub-rule (1A) of Rule 117 applied only to those who failed to furnish returns due to technical faults during the transitional period ending December 22, 2017, and that the petitioner had not provided evidence of such an attempt.

Key Issues

1. Whether the petitioner is entitled to submit its GST TRAN-1 form offline, considering the amendments to Rule 117 of the Central Goods and Service Tax Rules, 2017, and the alleged technical difficulties faced. (Question of law and mixed fact and law, turning on Rule 117(1) and 117(1A) of the CGST Rules, 2017). Petitioner's Arguments: The petitioner argued that the amendments to Rule 117, specifically sub-rule (1A), extended the deadline for furnishing offline GST TRAN-1 forms to December 31, 2019. They relied on interim orders from the Jaipur Bench of the Rajasthan High Court and judgments from the Delhi, Karnataka, Madras, and Kerala High Courts, which directed the acceptance of offline TRAN-1 forms due to technical glitches. They asserted that the amendments provided an opportunity to submit the form offline. Respondents' Arguments: The respondents contended that sub-rule (1A) of Rule 117 was applicable only to registered persons who failed to furnish their TRAN-1 forms due to technical faults on the common portal during the transitional period, which ended on December 22, 2017. They argued that the petitioner had not provided any evidence of attempting to upload the form before this date or that the failure was due to a technical glitch. They further argued that the amendments were being misconstrued by the petitioner.