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Legitimate carry forward of ITC cannot be denied for non-filing of TRAN-1

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Court :
Orissa High Court

Brief :
In M/s. Sunny Motors v. Central Board of Indirect Taxes and Customs (CBIC), Department of Revenue, Govt. of India and Others [W.P.(C) No.9348 of 2020 dated September 16, 2021], the current petition has been filed to direct the Department to accept the Goods and Services Tax ("GST") TRAN-1 form under Rule 117 of the Central Goods and Services Tax Rules, 2017 ("CGST Rules") and allow the Input Tax Credit ("ITC") claimed by M/s. Sunny Motors ("the Petitioner").

Citation :
W.P.(C) No.9348 of 2020 dated September 16, 2021

Legitimate carry forward of ITC cannot be denied for non-filing of TRAN-1 - directed Department to permit filing of TRAN-1 till November 01, 2021

In M/s. Sunny Motors v. Central Board of Indirect Taxes and Customs (CBIC), Department of Revenue, Govt. of India and Others [W.P.(C) No.9348 of 2020 dated September 16, 2021], the current petition has been filed to direct the Department to accept the Goods and Services Tax ("GST") TRAN-1 form under Rule 117 of the Central Goods and Services Tax Rules, 2017 ("CGST Rules") and allow the Input Tax Credit ("ITC") claimed by M/s. Sunny Motors ("the Petitioner").

The Petitioner was unable to upload the GST TRAN-1 Form because of some "unavoidable and unforeseen circumstances" within the stipulated time, i.e., December 27, 2017. Due to which, a representation dated June 12, 2019 was made by the Petitioner praying that he be permitted to file the GST TRAN-1 Form manually pursuant to an Order W.P.(C) No.9269 of 2018 dated April 3, 2018 passed by the Hon’ble Orissa High Court. The Department vide a letter dated July 8, 2020 wrote to the Petitioner to submit his invoices in original along with proof of payment of Central Excise Duty to which the Petitioner replied that all documents had already been submitted and that TRAN-1 Form should be accepted. The Petitioner not having heard from the Department since has filed the current petition.

The Hon’ble Orissa High Court relied on the judgment of Aagman Services Private Limited v. Union of India [W.P. (C) No.1329 of 2019 dated November 21, 2019] which permitted the Petitioner in that case to submit his TRAN-1 Form either electronically or manually. Also relied on Adfert Technologies Pvt. Ltd. v. Union of India and others, [(2020) 73 GSTR 267] wherein it was observed that extension of date for submitting the declaration electronically on account of technical difficulties on the common portal is permissible under Rule 117(1A) of CGST Rules. The Adfert Technologies Judgment (supra) further provided "no body shall be denied to carry forward legitimate claim of ITC on the ground of non-filing of TRAN-1 by 27th December, 2017."

Taking note and placing reliance on the above mentioned judgments, the court directed the Department to either open the portal to allow the Petitioner to file TRAN-1 Form electronically on or before November 1, 2021 or to accept the form from the Petitioner manually before that date.

 

Bimal Jain
on 30 September 2021
Published in GST
Views : 54
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