The Gujarat High Court has held that taxpayers entitled to claim Input Tax Credit (ITC) and a technical glitch in GST Portal should not deprive him of such a claim.
The department tried to upload the ITC – 01, but due to technical glitch in the GSTN portal, the authority concerned was unable to upload the ITC – 01. The authority, thereafter, inquired with the E.D.P. Cell Gujarat as to what can be done in the matter. The E.D.P. Cell Gujarat, in turn, asked the Assistant Commissioner to inform the GSTN through a Nodal Officer. The Assistant Commissioner informed the Nodal Officer. However, nothing could be worked out.
To a certain extent, the writ applicant, Ezzy Electricals also is at fault because while trying to upload the Form ITC – 01, it appears that a wrong offline tool was used. It is evident from the affidavit-in-reply filed by the department.
The division bench of Justice J.B.Pardiwala and Justice Nisha M.Thakore has held that if the writ applicant is otherwise entitled to claim the Input Tax Credit under Section 18(1)(c) of the Act, a technical glitch in the portal should not deprive him of such a claim. It was within the capacity of the department itself to resolve the controversy and see to it that the needful is done.
The court noted that Mr. Uchit Sheth, the learned counsel appearing for the writ applicant is right in his submission that had the department at the earliest point of time brought to the notice of his client about a wrong offline tool being used by the writ applicant, then probably, something could have been worked out.
It is for the respondents now to do the needful and ensure that the writ applicant is permitted to upload the Form ITC – 01 so as to enable him to claim the Input Tax Credit worth Rs.5 lakh approximately under Section 18(1)(c) of the Act. Mr. Sharma has ensured this Court that the needful shall be done at the earliest.
The court directed the respondents to do the needful and see to it that the writ applicant is able to claim the Input Tax Credit by uploading the Form ITC – 01. Let this exercise be undertaken at the earliest and completed within six weeks from the date of receipt of the writ of this order. One copy of this order shall be furnished at the earliest to Mr. Sharma for its onward communication.
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