A division bench of the High Court while considering a petition filed due to non-availability of Form GST ITC-02A on the GST Portal, directed the department to allow the assessee-petitioner Input Tax Credit of Rs.2,58,03,590/- through the next GSTR-3B return.
The appellants, Pacific Industries Ltd, has started a new separate business and since the Form GST ITC-02A was not available on the GSTN Portal for the entire period of 30 days from the registration of its separate business verticals the petitioner was denied the opportunity of transferring the unutilized input tax credit to its new registration which became effective on 16.04.2019.
Before the High Court, the Petitioner claimed that they have uploaded a manual copy and submitted the same to the Deputy Commissioner, CTO Ward, A-Circle Udaipur on 14.05.2019 but the same was not accepted.
The division bench of the High Court comprising Mr. Justice Sandeep Mehta Mr. Justice Vinod Kumar Bharwani observed that the counsel representing the respondent GST Department was not in a position to dispute the fact that Form GST ITC-02A was not available on the GSTN Portal within the stipulated period of 30 days from the date of registration of the petitioner’s new business vertical and hence, the petitioner was genuinely and bonafidely prevented from uploading the same.
Allowing relief to the petitioner, the High Court held that “as a consequence of the admitted factual position, we are of the firm opinion that the impugned action whereby, the respondents have failed to acknowledge and transfer the input tax credit to the tune of Rs.2,58,03,590/- accruing to the petitioner pursuant to the registration of its new business unit in accordance with Rule 41A of the GST Rules, is grossly illegal, arbitrary and unjust.”
“Hence, the writ petition deserves to be and is hereby allowed in the following terms: “The respondents are directed to regularise the input tax credit in favor of the petitioner as per entitlement. The petitioner shall be allowed to avail the Input Tax Credit of Rs.2,58,03,590/- through the next GSTR-3B return,” the Court concluded
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