Ms Kheriwal Enterprises Through One Of Its Partners Sumer Agarwal vs. Union Of INDIA

Held

The Court disposed of the writ petition in view of the submission made by the Assistant Solicitor General of India. The Court noted that the time limit for filing TRAN-1 and TRAN-2 Forms had been extended up to March 31, 2019, for registered persons who could not submit them on time due to technical difficulties with the common portal. The Assistant Solicitor General assured the Court that all necessary steps, including recommendations, would be taken as per the amended rules to enable a decision on merits concerning the Input Tax Credit. The Court directed that the matter would be decided on its merits by the respondents regarding the allowance or disallowance of CENVAT Credit for the period in question. No specific issue was left undecided, as the Court relied on the subsequent government action.

Facts

The petitioner, M/s. Kherriwal Enterprises, filed a writ petition before the Jharkhand High Court challenging their inability to file TRAN-1 and TRAN-2 Forms within the stipulated time. The petitioner attributed this failure to various reasons, including technical difficulties with the GST portal. The respondents, Union of India and the State of Jharkhand, were represented. The Assistant Solicitor General of India informed the Court that the Central Government, in exercise of powers under Section 164 of the Central Goods and Service Tax Act, 2017, had amended the rules to extend the deadline for filing TRAN-1 and TRAN-2 Forms to March 31, 2019, for registered persons facing technical difficulties. A notification to this effect was tendered and taken on record.

Key Issues

1. Whether the petitioner is entitled to relief for failing to file TRAN-1 and TRAN-2 Forms within the original due date, considering the alleged technical difficulties with the GST portal, and in light of the subsequent extension of the filing deadline? The petitioner argued that they missed the deadlines for filing TRAN-1 and TRAN-2 Forms due to technical issues with the GST portal. The revenue, through the Assistant Solicitor General of India, submitted that the Central Government had extended the time limit for filing these forms up to March 31, 2019, through an amendment to the rules, specifically for those who faced technical difficulties. The revenue also assured that the Assistant Solicitor General would facilitate necessary recommendations for a decision on merits regarding Input Tax Credit.