SC directed UOI to file affidavit regarding technical glitches faced in filing GST TRAN-01

Last updated: 27 February 2021

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Quick Summary

The Supreme Court has ordered the Union of India to submit an affidavit within four weeks. This affidavit must address the technical problems taxpayers have encountered while filing Form GST TRAN-01. The court also granted a stay on a previous Punjab & Haryana High Court ruling that allowed manual filing of TRAN-1, indicating a move towards a concrete examination of the technical issues.

Court :
Supreme Court of India

Brief :
The Hon’ble Supreme Court of India in Union of India & Ors. v. M/s National Engineering Co. [Special Leave Petition (Civil) Diary No(s). 2701/2021, dated February 15, 2021] directed Union of India ("the Petitioner") to file an affidavit within 4 weeks, answering the assertion regarding technical glitches and problems faced by the taxpayers while uploading and filing Form GST TRAN-01 details. Further stated that, the factual assertions in this regard will be dealt with concretely and expressly and if required, by taking the help of experts.

Citation :
Special Leave Petition (Civil) Diary No(s). 2701/2021, dated February 15, 2021]

The Hon’ble Supreme Court of India in Union of India & Ors. v. M/s National Engineering Co. [Special Leave Petition (Civil) Diary No(s). 2701/2021, dated February 15, 2021] directed Union of India ("the Petitioner") to file an affidavit within 4 weeks, answering the assertion regarding technical glitches and problems faced by the taxpayers while uploading and filing Form GST TRAN-01 details. Further stated that, the factual assertions in this regard will be dealt with concretely and expressly and if required, by taking the help of experts.

Furthermore, granted stay over the judgement/ order of Hon’ble Punjab & Haryana High Court in M/s National Engineering Co. v. Union of India &Ors. [CWP No. 27891 of 2019 (O&M) decided on November 4, 2019] wherein taxpayers were allowed to file or revise their already filed incorrect TRAN-1 either electronically or manually statutory Form GST TRAN-01 on or before November 30, 2019. Further, it was held that Department cannot deprive taxpayers from their valuable right of credit and cannot deny the taxpayers from carry forwarding legitimate claim of CENVAT / Input Tax Credit on the ground of non-filing of Form GST TRAN-01 by December 27, 2017.

FAQ :

The Supreme Court directed the Union of India to file an affidavit within four weeks, addressing the technical glitches and problems faced by taxpayers when uploading and filing Form GST TRAN-01.

Form GST TRAN-01 is a statutory form used by taxpayers to claim transitional credit for CENVAT or Input Tax Credit when the Goods and Services Tax (GST) regime was introduced.

The Punjab & Haryana High Court had previously allowed taxpayers to file or revise their GST TRAN-01 form either electronically or manually by November 30, 2019.

The Supreme Court granted a stay on the High Court's order to concretely and expressly deal with the factual assertions regarding technical glitches, potentially with expert assistance.

The High Court had held that the Department cannot deprive taxpayers of their right to credit or deny carrying forward legitimate claims on the ground of non-filing of Form GST TRAN-01 by December 27, 2017.