Comnet Vision (INDIA) PVT.LTD vs. The Commissioner Department Of Trade And Taxes

Held

The Court held that the concerned officials of the GST Council shall enable the petitioner to fill the relevant GST form online. In the event that it is not possible to do so within the prescribed time, which was set to expire on 31.03.2019, the respondents were directed to entertain the concerned Forms manually under Rule 97A and process them in accordance with the law. The Court's reasoning was based on the petitioner's grievance regarding technical difficulties and the extended timeline provided by the GST Council's notification, as well as the precedent set by the Allahabad High Court. The ratio decidendi is that when statutory notifications provide for extensions due to technical issues, and a taxpayer faces such issues, the authorities must provide a mechanism for compliance, either online or manually, to prevent the taxpayer from suffering loss of credit or other consequences.

Facts

The petitioner, Comnet Vision (India) Pvt. Ltd., filed a writ petition before the Delhi High Court aggrieved by the lack of response and technical difficulties encountered while uploading GST forms digitally. The petitioner contended that Notification No. 48/2018 dated 10.09.2018, issued by the GST Council, allowed entities facing technical difficulties to upload data within an extended period until 31.03.2019. The petitioner sought to implead the GST Council as respondent No. 2, which was allowed. The Revenue, represented by the Senior Standing Counsel, did not dispute the existence of the notification but argued that the court should not issue blanket directions concerning State GST Forms in the absence of the GST Council. The petitioner relied on a decision from the Allahabad High Court in M/s Earthcon Constructions Pvt. Ltd. vs. Union of India.

Key Issues

1. Whether the petitioner is entitled to relief on account of technical difficulties faced in uploading GST forms, considering the extended timeline provided by GST Council Notification No. 48/2018 dated 10.09.2018? (Question of law and fact, turning on the interpretation and application of the said notification and the petitioner's ability to comply with it). Petitioner's Arguments: The petitioner argued that they faced technical difficulties in uploading GST forms and should be allowed to avail the extended deadline of 31.03.2019 as per Notification No. 48/2018. They cited the Allahabad High Court's decision in M/s Earthcon Constructions Pvt. Ltd. vs. Union of India, which directed the respondents to reopen the portal or entertain applications manually. Revenue's Arguments: The Revenue acknowledged the notification but argued that the court should not issue blanket directions concerning State GST Forms, especially in the absence of the GST Council. They did not dispute the petitioner's claim of technical difficulties but raised a procedural objection regarding the scope of directions.