The Orissa High Court directed the Goods and Service Tax Network (GSTN) to either modify the Goods and Service Tax (GST) portal to facilitate filing of TRAN-1 to claim the ITC or accept returns manually against the old registration certificate.
The petitioner, Ashok Kumar Meher has sought a direction to the Opposite Parties to implement the order dated 17th September, 2018 passed by the Joint Commissioner of Sales Tax, Bolangir Range, Bolangir directing restoration of old registration number under the GST Act. The Petitioner has also sought the quashing of the demand as a result of denial of the Input Tax Credit (ITC) to the Petitioner. The third prayer is for a direction to the Opposite Parties to permit the Petitioner to avail the ITC as an existing dealer under the existing law or on the goods held in stock on the appointed day.
Mr. Sunil Mishra, learned Standing Counsel for the Department sought to submit that even if the old registration is restored, the stage for filing of TRAN-1 forms have already been crossed and therefore, it would be of no assistance to the Petitioner to have its old registration number restored. According to Mr. Mishra, since a new registration number has already been granted to the Petitioner on his application, he should not insist upon restoration of the old registration number. He drew attention to the undertaking given by the Petitioner on 5th April, 2017 when the new registration was issued to him. He had undertaken to file returns as per law and not repeat the same mistake for which his earlier registration was cancelled.
The case of the Department is that the cancellation of the Petitioner’s registration certificate issued originally under the Orissa Value Added Tax Act came about since the Petitioner failed to file returns. The case of the Petitioner, however, was that because of the cancellation of the registration certificate under the OVAT Act, he was not able to file returns and therefore was compelled to obtain a new registration.
The division bench headed by Chief Justice, Dr. S. Muralidhar and Justice B.P. Routray held that The plea of technical difficulties or technical glitches will not come in the way of the above order being given effect to. For this purpose a direction is issued to GSTN to either modify or make changes in the portal to facilitate the Petitioner filing TRAN-1 to claim the ITC or accept returns manually against the old RC so that the Petitioner can avail of the ITC.
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