Non-Disbursal of GST Transitional Credit despite Court Order due to Glitches on Portal: Delhi HC Warns Dept Imposing Cost and Interest [Read Order]

Amidst many complaints regarding the issues with the Income Tax and GST Portals, the Delhi High Court Division Bench of Justice Vibhu Bakhru and Justice Purushaindra Kumar Kaurav warned the department of imposing exemplary costs and interest for non-disbursal of Goods and Services (GST) Transactional Credit.

The petitioner had filed the earlier writ petition among other reliefs, seeking a direction that it be allowed credit for the specified amount along with interest, which the petitioner claimed it was entitled to. The petitioner’s grievance was that its revised returns had not been processed by the respondents.

In view of the discussion, the Court was of the opinion that the petitioner is entitled to relief. A direction was issued to the respondents to take on record and process originally filed returns on 04.10.2018 which the petitioner attempted / sought to file and process it in accordance with law within 4 weeks. In compliance with the said order, the petitioner’s revised return was taken on record. However, it was not provided the credit, which it claims amounts to ₹59,13,946/-.

There is some controversy as to the amount of credit payable. According to respondents, the petitioner filed the revised form, TRAN-1, on 08.10.2022 claiming a credit of ₹57,13,829/-.

The respondent-revenue submitted that the credit claim shall be decided within a period of ninety days.

The remaining question to be addressed was whether the petitioner is entitled to any interest as claimed. The Bench observed that, “There is no provision for payment of interest. The petitioners have premised their claim on the ground that the order dated 31.10.2018 was not complied with.”

It was further observed that there was a technical problem that was required to be resolved and that the respondents have now resolved the same by opening the portal for filing the revised forms including TRAN-1.

The Court also expressed the view that if there were any technical problems in implementing the said order, the respondents ought to have approached this Court rather than disregarding the implementation of the order dated 31.10.2018. “This Court was also inclined to impose exemplary costs for the aforesaid reasons”, said the Delhi High Court.

However, leniency was granted in this regard as the GST was rolled out recently and the respondents have been endeavoring to resolve the problems in implementation of GST.

To Read the full text of the Order CLICK HERE

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