Madras HC says GST is in Nascent Stage, Taxpayers are Still Learning the Ropes, allows TRAN-1 Filing [Read Order]

The Madras High Court took into account the difficulties faced by taxpayers due to inconsistent performance of the GST portal and allowed delayed upload of the Tran-1 declaration.

The court shared this view while addressing a writ petition filed by M/s. Samrajyaa and Company, praying for quashing of an order passed by the Income Tax Grievances Redressal Committee(ITGRC). The order denied permission to the petitioner to file Tran-1 because of the failure to produce evidence of technical/system error. The counsel for the petitioner alleged that there were glitches in the GSTN portal and the petitioner was thus unable to file/upload GST Tran-1 but the petitioner had not taken screenshots of the alleged glitches as evidence of the same.

Justice Dr. Anita Sumanth while allowing the petition held, “In my view, the request of the petitioner before the authorities coupled with the averments in the affidavit to the effect that it faced technical glitches are itself sufficient to establish this position. One cannot lose sight of the difficulties faced by assessees in transitioning into the new medium/procedure set out under the GST regime as this is common and public knowledge. . . . . the era of GST portal taxpayers is in a nascent stage and both the Department as well as assessees are still learning the ropes. . . . a rigid view should thus not be taken in matters involving procedural requirements such as availing of credit;”