M/S. Udgeeth Nirman Private Limited vs. Union Of INDIA & Ors.

Facts

The petitioner, M/s. Udgeeth Nirman Private Limited, filed a writ petition before the Calcutta High Court challenging the action of the WBGST Authority in denying them transitional Input Tax Credit (ITC) benefits. The petitioner alleged that they could not claim these benefits by filing TRAN I and TRAN II forms due to the GST portal being blocked at the relevant time. The petitioner had made a representation on July 4, 2018, to the concerned authority regarding this grievance. The petitioner relied on several High Court judgments to support their claim for transitional ITC.

Held

The Court did not delve into the merits of the petitioner's representation or the legal entitlement to transitional ITC. Instead, the Court disposed of the writ petition by directing the respondent authority to consider and dispose of the petitioner's representation dated July 4, 2018. The authority was instructed to pass a reasoned and speaking order after providing an opportunity of hearing to the petitioner or their authorized representative. Crucially, the Court directed the authority to take into consideration the judgments relied upon by the petitioner, subject to verification of the claim. If the authority found the petitioner entitled to the claim, it was to be allowed without delay. The Court expected the entire process to be completed expeditiously, preferably within eight weeks from the communication of the order.

Key Issues

1. Whether the petitioner is entitled to claim transitional ITC benefits despite not being able to file TRAN I and TRAN II forms due to portal blockage, and if so, under which provision of law? The petitioner argued that they were unable to file their TRAN I and TRAN II forms within the prescribed time due to technical issues with the GST portal. They contended that this technical impediment should not prejudice their right to claim transitional ITC, which they are otherwise entitled to. The petitioner relied on judgments from the Calcutta High Court in cases such as Nodal Officer, JT. Commissioner, IT Grievance Vs. Das Auto Centre, P. Bhogilal Pvt. Ltd. Vs. Union of India & Ors., and M/s. RSD Natural Resources PVT. Ltd Vs. State of West Bengal and Ors. to support their claim that the authorities should consider such claims sympathetically when portal issues are involved. The revenue or State's arguments were not explicitly recorded in the judgment.