The High Court of Punjab and Haryana directed the Goods and Service Tax (GST) Authority to permit Petitioner to upload TRAN-I on or before June 30, 2020, and in case Respondent fails to do so, the Petitioner would be at liberty to avail ITC in question in GSTR-3B of July 2020.
The Petitioner, Amba Industrial Corporation is a partnership firm, engaged in the business of trading of S.S. Flats, is registered with Respondent-GST Authorities under Central Goods and Services Tax Act, 2017. The Petitioner prior to the introduction of GST was registered under the Central Excise Act, 1944 as a dealer/trader. The Petitioner purchased S.S. Flats and Scrap on payment of Excise Duty.
The Petitioner to carry forward unutilized CENVAT Credit, in terms of Section 140 of the CGST Act read with Rule 117 (1) was required to upload TRAN-I on the official portal of Respondent, however, Petitioner failed to upload TRAN-I by the last date. As per Rule 117 (1A) of the Rules, the Commissioner on the recommendation of the Council may extend the date for submitting the declaration, in respect of registered persons who could not submit a declaration by the due date on account of technical difficulties. The Respondents in the exercise of the power conferred by Rule 117 (1A) of the Rules, by order extended the date for filing TRAN-I till March 31, 2020.
The division bench of Justice Jaswant Singh and Justice Sant Parkash directed the Goods and Service Tax (GST) Authority to permit Petitioner to upload TRAN-I on or before June 30, 2020, and in case Respondent fails to do so, the Petitioner would be at liberty to avail in question in GSTR-3B of July 2020.
“The Petitioner has challenged vires of Rule 117 (1A) of Rules, however, we do not think it appropriate to declare it invalid as we are of the considered opinion that Petitioner is entitled to carry forward Cenvat Credit accrued under Central Excise Act, 1944. The Respondents have repeatedly extended the date to file TRAN-I where there was a technical glitch as per their understanding. Repeated extensions of the last date to file TRAN-I in case of technical glitches as understood by Respondent vindicate the claim of the Petitioner that denial of unutilized credit to those dealers who are unable to furnish evidence of an attempt to upload TRAN-I would amount to a violation of Article 14 as well Article 300A of the Constitution of India,” the bench observed.
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