Dotcom Home Fashions PVT LTD. vs. Union Of INDIA & Ors.

Held

The Court disposed of the writ petitions in terms of the statement made by the Union of India and with the liberty granted to the petitioners. The Court recorded the submission that a grievance mechanism had been established to address cases where assessees could not upload data due to technical glitches, and that benefits would be provided in such instances. The revenue assured that speaking orders would be issued for any rejections. The petitioners were granted liberty to challenge the final determination if aggrieved and also reserved their right to challenge the constitutional vires. The Court explicitly stated that it had not commented on the merits of the case.

Facts

Multiple petitioners, including Sare Realty Projects Private Limited, Dotcom Home Fashions Pvt Ltd., Tara Chand Saluja & Sons, Vee Gee Auto Components Pvt. Ltd., Ankur Oil & Refrigeration, M/s Tara Chand Saluja & Company, M/s Alliance Graphic Equipment Private Limited, M/s Batra Art Press, Benlon India Ltd., FRV Power India Pvt. Ltd., and Aman Motors, filed writ petitions before the Delhi High Court. The core issue revolved around the inability of assessees to upload data to avail of CENVAT and VAT credit or credit on stock-in-trade, allegedly due to technical glitches. The Union of India, through its counsel, informed the Court about a grievance mechanism established to address such issues, referencing Circular No. 39/13/2018-GST dated April 3, 2018. It was stated that out of 17,000 cases, approximately 13,000 had been resolved.

Key Issues

1. Whether the petitioners, who were unable to upload data to avail of CENVAT and VAT credit or credit on stock-in-trade due to technical glitches, are entitled to relief under the existing grievance redressal mechanism? Petitioner's Contention: The petitioners argued that they had made representations under the grievance mechanism and sought liberty to challenge any adverse final determination. They also reserved their right to challenge the constitutional validity of relevant provisions if necessary. Revenue's Contention: The Union of India stated that a grievance mechanism had been put in place to deal with such cases. It was submitted that in cases where technical glitches prevented data upload, the benefit would be granted. The revenue further assured that any rejection of a claim or representation would be accompanied by a speaking order.