08.03.2022- Technical Glitches Of The GST Portal Cannot Take Away The Vested Right Of Input Tax Credit Of The Assessee: Gujarat HC

The Hon’ble High Court of Gujarat vide its order dated 11.02.2022 in the matter of M/s Bodal Chemicals Ltd.  Vs. Union of India in R/Special Civil Application No. 9151 of 2021 held that Input Tax credit is a vested right of the assessee and cannot be taken away on account of technical glitches and the department cannot raise their hands in despair saying that it is not possible to take care of the technical glitches.

The writ applicant preferred the present writ petition seeking directions to respondents to allow it to file the GSTR-6 returns with the details of the ISD credit of Rs. 20,52,989/- and to allow the petitioner to avail and distribute the same.


  • The writ applicant is engaged in the business of Chemical products like – H-Acid, Vinyl Sulphone, Dyes etc. and registered as Input Service Distributor (ISD) under the CENVAT Credit rules for availing and distributing the credit to its units.
  • That on introduction of GST, the writ applicant filed GST TRAN-1 for transferring and carrying forward the balance of CENVAT Credit lying with it including the un-utilized balance of ISD amounting to Rs. 20,52,989/-.
  • The writ applicant filed a return in GSTR-6 with details of balance lying in the CENVAT Credit lying on 30.06.2017 for transferring such Credit to GST regime. However, due to some technical error on the GST network the balance in return is showing as Rs. 2,96,528/- and balance of ISD credit of Rs. 20,52,989/- was not included in the balance of ISD credit.
  • That over a period of time the writ applicant has been requesting the Nodal Officer and the jurisdictional Assistant Commissioner to correct the same and made several representations in that regard, however the needful was not done. Hence, the applicant approached before the Hon’ble High Court with the present writ petition.To read more subscribe today: www.taxo.online


to our newsletter. Please enter your email and press submit.