The High Court of Punjab and Haryana directed the GST Authority to permit the Petitioner to upload TRAN-I on or before June 30, 2020, and in case of the respondent authority fails to do so, the Petitioner would be at liberty to avail Input Tax Credit (ITC) in question in GSTR-3B of July 2020.
The Petitioner, M/s Haryana Mill Store engaged in the business of trading of paint and allied goods, is registered with Respondent-GST Authorities under Central Goods and Services Tax Act, 2017. The Petitioner prior to the date of the introduction of GST was registered under Haryana VAT Act, 2003.
The Petitioner was entitled to claim credit of the duties paid on inputs and the credit of the value-added tax in respect of inputs held in stock, for which it was required to furnish information in Form GST TRAN-1.
However, Petitioner failed to upload TRAN-I by the last date. As per sub-Rule (1A) of Rule 117 of the Rules, the Commissioner on the recommendation of the Council may extend the date for submitting the declaration, in respect of registered persons who could not submit a declaration by the due date on account of technical difficulties. The Respondents in the exercise of the power conferred by sub-Rule (1A) of Rule 117 of the Rules, by order extended the date for filing TRAN-I.
The division bench of Justice Jaswant Singh and Justice Sant Parkash in the light of the precedents directed the GST Authority to permit the Petitioner to upload TRAN-I on or before June 30, 2020, and in case of the respondent authority fails to do so, the Petitioner would be at liberty to avail Input Tax Credit (ITC) in question in GSTR-3B of July 2020.
“The Petitioner has challenged vires of Rule 117 (1A) of Rules, however, we do not think it appropriate to declare it invalid as we are of the considered opinion that Petitioner is entitled to carry forward Cenvat Credit accrued under Central Excise Act, 1944. The Respondents have repeatedly extended the date to file TRAN-I where there was a technical glitch as per their understanding. Repeated extensions of the last date to file TRAN-I in case of technical glitches as understood by Respondent vindicate the claim of the Petitioner that denial of unutilized credit to those dealers who are unable to furnish evidence of an attempt to upload TRAN-I would amount to a violation of Article 14 as well Article 300A of the Constitution of India,” the bench observed.
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