M/S Dharam Industries (A Proprietorshiip Firm) vs. Union Of INDIA
Held
The Court held that due to technical glitches on the GST portal, the petitioner was unable to fill and submit the CENVAT credit form. Following the principles laid down by this Court and the Bombay High Court, the Court directed the respondents to reopen the GST portal for the petitioner within two weeks of receiving a copy of the order. If the portal could not be reopened, the respondents were directed to entertain the petitioner's application manually and pass an order after due verification of the claimed credit. The respondents were also instructed to ensure that the petitioner is allowed to pay their taxes on the regular electronic system using the credit.
Facts
The petitioner, M/s Dharam Industries, initially operated a unit in Delhi and availed CENVAT credit. The unit was subsequently transferred to Raipur, Chhattisgarh. The petitioner claimed the CENVAT credit benefit that was allowed in Delhi, which was also allowed in Raipur on June 27, 2017. However, due to technical glitches on the GST portal, the petitioner was unable to submit the required forms to claim the credit in Chhattisgarh. Despite repeated applications and correspondence from July 2017 to March 2020, the issue remained unresolved, leading to potential penalty or interest charges for the petitioner through no fault of their own. The petitioner filed a physical application on March 15, 2020, for the CENVAT credit amount of excise duty on June 30, 2017, which had not been refunded.
Key Issues
1. Whether the petitioner is entitled to claim CENVAT credit in Chhattisgarh for benefits availed in Delhi, despite alleged technical glitches preventing timely submission of forms on the GST portal? 2. Whether the respondents should be directed to reopen the GST portal or entertain the petitioner's application manually to resolve the issue of unrefunded CENVAT credit? Petitioner's arguments: The petitioner contended that they were unable to file the necessary forms on the GST portal due to technical issues, not due to any fault on their part. They relied on the principle laid down in a co-ordinate bench judgment of this Court in WPT No. 33 of 2018 and a judgment of the Bombay High Court in Heritage Lifestyles and Developers and Private Limited V. Union of India (2020 SCC OnLine Bom 2397). Respondents' arguments: The respondents submitted that since the application was already pending before the authority, it would be considered.
AI-generated summary — verify with the full judgment below
1 HIGH COURT OF CHHATTISGARH, BILASPUR WPT No. 119 of 2020 • M/s Dharam Industries (A Proprietorshiip Firm) Having Its Office Plot No. 31, Phase- II, Siltara Industrial Growth Centre, Dharsiwa, Raipur, Chhattisgarh, Through Its Sole Proprietor, Shri Bal Raj Chadda, Son Of Late Shri Tilak Raj Chadda, Presently Aged Around 73 Years, Resident Of B-69, Green Wood City, Sector 45, Gurugram (Haryana) Pin- 122003 ---- Petitioner Versus
Union Of India Through The Revenue Secretary, Ministry Of Finance, Department Of Revenue, North Block, Central Secretariat, New Delhi- 110001
Central Board Of Excise And Customs Through The Secretary, Ministry Of Finance, North Block, Central Secretariat, New Delhi- 110001
The Assistant Commissioner Of Central Excise And Central GST Division-I, Delhi- I, 17-B- IAEA Building, Indraprastha Esatate, New Delhi 110002
The Assistant Commissioner Of Central Tax And Central Excise, Customs, Goods And Service Tax Central Excise Building, Tikrapara, Dhamtari Road, Raipur, Chhattisgarh
The GST Council Through The Additional Secretary, GST Council Secretariat, 5th Floor, Tower II, Jeevan Bharti Building, Janpath Road, Rajeev Chowk, New Delhi 1100
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