M/S Tara Steel Centre Rampur vs. Union Of INDIA And 2 Others

Neutral Citation No. - 2023:AHC:107534-DB Court No. - 47 Case :- WRIT TAX No. - 570 of 2023 Petitioner :- M/S Tara Steel Centre Rampur Respondent :- Union Of India And 2 Others Counsel for Petitioner :- Mohit Behari Mathur Counsel for Respondent :- A.S.G.I.,C.S.C.,Gopal Verma Hon'ble Ashwani Kumar Mishra,J. Hon'ble Vinod Diwakar,J. Following orders were passed on 05.05.2023:- "Order passed by the Deputy Commissioner, State Tax (GST), U.P., dated 06.02.2023 is primarily challenged on the ground that online system was not functional and, therefore, the petitioner submitted its revised Tran-1/Tran-2 offline on 30.11.2022, which was the last date specified for the purposes in terms of the liberty granted by the Supreme Court. Argument is that having received the returns on the last date in offline form the department is not justified in refusing to entertain them on the incorrect pretext that such returns were filed on 01.12.2022. Learned counsel for the respondent department prays for and is allowed ten days' time to obtain specific instructions in the matter by the next date fixed. List this case on 17.05.2023, as fresh." Learned State counsel has obtained instructions from the concerned Deputy Commissioner, State Tax stating that the petitioner was required to upload the form online and since this has not been done, as such the offline form submitted by the petitioner on the last date cannot be entertained. It is also submitted that the process is online and the concerned officer has no discretion to entertain the offline application unless the form itself is uploaded online. From the facts of the case, we find that the procedures are being given primacy over the substantive rights of the parties. In the present case, the State has come out with a policy for availing transitional input tax credit through revised Tran-1/Tran-2. The last date for availing such benefit was 30th November, 2022. The petitioner asserts that the online system was not functional and, therefore, the petitioner submitted the offline form in the office of concerned authority on 30th itself. The State authorities in their

instructions do not dispute petitioner's assertion in that regard. It is, therefore, admitted to the respondents that the offline application was moved on the last date specified for availing the facility provided for input tax credit to the dealer concerned. The fact that the online process had some technical glitch is also not disputed. Procedures have been provided to subserve the larger interest of the policy and the substantive rights of the persons, who are to be regulated by such procedures. The State having provided for a time frame to avail the facility cannot be permitted to deny the benefit of scheme only because the application was not made online, when it is not disputed that the online system itself was not functional on that day. The dealer has accordingly exercised its right in terms of the policy and has submitted offline application within the time permitted by the State under the policy. Necessary arrangements will thus have to be made by the authorities so as to ensure that the rights availed of by a dealer, in terms of the policy, are not frustrated for reasons beyond the control of the dealer. For the reasons and discussions held above, we are of the considered opinion that the authorities of State must make necessary amendments in the procedures so as to deal with exigency of the present kind and the rights exercised by the dealer to avail the ICT benefit cannot be denied for the reasons set forth above. Writ petition, accordingly, succeeds and is allowed. Respondents are directed to entertain the offline application of the petitioner, submitted within time, and to process his claim accordingly. Petitioner undertakes to extend necessary co- operation, as are desired from it. Order Date :- 17.5.2023 RA RAZIQ ALI High Court of Judicature at Allahabad