The Madras High Court directed the GST Authority to allow filing of revised Form TRAN-1 by opening the GST portal as Benefit of Input Tax Credit (ITC) cannot be frustrated on grounds of technicalities.
The respondent, M/s.Bharat Electronics Limited had lodged a claim for Input Tax / CENVAT Credit by filing form TRAN-1, admittedly, within time and disclosed a credit of Rs.14,97,28,201/- as Balance Credit in Column 5(a) of form TRAN-1, while showing a sum of Rs.80,98,936/- in Column 6 of form TRAN-I, though the respondent ought to have disclosed the sum of Rs.14,97,28,201/- in Column 6 of form TRAN-1 as well, on an erroneous / mis-construction as to the purpose of the said column in form TRAN-1.
The Input Tax / CENVAT Credit was available under the existing / prior indirect Tax laws such as VAT, Entry tax and Central Excise and Service Tax, both the State and Union intended to provide a mechanism for transition of credit that was legitimately earned and remained unutilised under various fiscal laws existing at the time of introduction of GST. With this avowed objective, the GST law permitted the registered / taxable persons under GST law to transition the credit that was earned and lying to the credit of such registered / Taxable person under the existing / prior laws to GST.
The division bench of Justice Pushpa Sathyanarayan and Justice Mohammed Shafiq ruled that if there is substantial compliance, denial of benefit of Input Tax Credit which is a beneficial scheme and framed with the larger public interest of bringing down the cascading effect of multiple taxes ought not to be frustrated on the ground of technicalities.
In view of the above, the court affirm the order of the Single Judge in directing the petitioner to enable the respondent herein to file a revised Form TRAN-1, by opening of the portal and that such exercise is to be completed within a period of 8 weeks from the date of issue this order.
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