2018 Taxo.online 414

R/SPECIAL CIVIL APPLICATION NO. 16106 of 2018 dated 17.10.2018





Central Goods & Services Tax Act, 2017


CGST Rules 2017

117 and 120A

Akil Kureshi, Justice & B.N. Karia, Justice


High Court


Represented by: –

Petitioner: – Mr. Dhaval Shah

Respondent: –

Order: –

  1. The petitioners’ main prayer is for a direction to the respondents to allow the petitioners to file revised declaration in Form TRAN­-1 for the left over CENVAT Credit amounting to Rs.1,06,08,998/­. In this context, the petitioners have also challenged the vires of Rules­-117 and 120A of the Central Goods and Service Tax Act, 2017(“CGST Act” for short) insofar as they prescribe time limit for filing revised Form GST TRAN­-1, as being ultra vires of Section 140 of the CGST Act.
  2. By detailed judgment dated 12/19.09.2018 passed in Special Civil Application No.4252 of 2018 in the case of Willowood Chemicals Pvt. Ltd. & another v. Union of India and others, this Court had rejected challenge to the vires of the said statutory provisions in the context of time limit provided therein. The petitioners’ challenge to the statutory provisions, therefore, stood terminated.

3.The main grievance of the petitioners, however, needs further examination. Counsel for the petitioners pointed out that Form TRAN-­1 was filed by the petitioners on 08.07.2017 showing balance CENVAT Credit of Rs.1,06,08,998/­. However, due to pure over-sight and typographical error, the CENVAT Credit admissible in ITC was shown as “Nil”. On account of this wrong declaration, the petitioners would not be able to migrate the left over CENVAT Credit as on 30.06.2018 to the GST regime. Counsel pointed out that the last date by extension for filing Form TRAN-­1 was 27.12.2017, before which date, the petitioners had attempted to make correction in the said Form.

4.A letter was written to the authorities on 25.11.2017 stating as under;

“Referring to our telecommunication on help desk at the time of filling TRANS 1 in the head of Amount of Tax Credit Carried Forward, We missed to enter the amount in Column Cenvat Credit admissible as ITC and as a result Cenvat Credit is not carried over. Moreover we do not have option of Re­open TRANS 1…”

  1. In response to such letter, the petitioners received following response from the authorities; “Resolution : With respect to your stated query, kindly met all the system requirements, system showing “Access denied” then, please clear your cache and login to GST portal again with correct username and password (This could be a session time out issue). Retrieve your username and password and log­in again.”
  2. Thus, after following the procedure, as suggested in the said letter, the petitioners could not correct the TRAN-­1 declaration. The petitioners so conveyed to the respondents on 15.03.2018, as under;

“While filling TRANS 1 we missed to enter tax credit carried forward 5(a), 5(b), 5(c) in Cenvat Credit admissible as ITC. Later we have lodged a complaint to GST Helpline on 16th November 2017. Till date nothing has happened. Our “Service Request Number” is 201712191829221.”

  1. Counsel for the petitioners would contend that the TRAN-­1 declaration was filed within time and attempt was also made before the last date, i.e. 27.12.2017, to correct a pure typographical error. However, the system did not accept such correction. The petitioners would, thus, lose the entire CENVAT Credit balance of Rs.1,06,08,998/­.
  2. It would, prima facie, appear that the extended time for making declaration, which was extended upto 27.12.2017, would take within its fold, any typographical or such other corrections, which may be noted in the declaration already filed. Even otherwise, the case of the petitioners would, perhaps, fall within the situation of the assessee being unable to file correct declaration due to technical glitches on the official portal, for which purpose, the Commissioners are authorized to grant extension upto 31.03.2019.
  3. Notice returnable on 30.10.2018. Direct service permitted.

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