The High Court of Delhi,allowed AAI to file an appeal and submit additional documents after its claim for CENVAT credit of Rs. 9.34 crores was rejected due to a mismatch in ST-3 returns and incomplete supporting documents.

Airports Authority ofIndia,petitioner-assessee, managed airports across India. The dispute concerned the period from April to June 2017, during which the petitioner sought to claim credit of Rs. 17,40,24,033/-.

As this period preceded the Goods and Service Tax ( GST ) regime, the petitioner had filed the ST-3 return claiming Rs. 8,06,12,708/- as CENVAT credit. When the petitioner later tried to amend the return, the portal did not allow it because the GST regime had already begun.

The petitioner counsel submitted that the TRAN-1 Form had been filed to claim CENVAT credit of around Rs. 17.40 crores. The Adjudicating Authority, however, held that the credit could not be allowed because it was not reflected in the ST-3 Return.

The Authority observed that under Section 140 of the CGST Act, transitional credit required all conditions to be met, including reflection in the ST-3 return, eligibility under GST law, and submission of supporting documents. It noted that Rs. 9,34,11,324/- claimed in TRAN-1 was not shown in the ST-3 Returns and was therefore ineligible.

The petitioner counsel argued that the ST-3 return could not be filed due to a software glitch and sought the benefit. The petitioner admitted in a letter dated 23rd January 2018 that credit of Rs. 9,34,11,325/- had not been claimed and contended that the Authority should have considered this.

Reliance was placed on the Supreme Court decision in CBIC v. Aberdare Technologies Pvt. Ltd. (2025), which held that software limitations could not justify denying benefits.

The Department contended that the TRAN-1 had been examined, and documents were requested for verification. The petitioner did not provide complete documentation, and the credit of Rs. 14,40,24,033/- remained unverified.

The petitioner attributed the non-filing to operational complexities across 137 airports and procedural limitations during the transitional period from service tax to GST. The petitioner counsel also cited Union of India v. Filco Trade Centre Pvt. Ltd. (2023), where the Supreme Court recognized GST portal glitches and allowed relaxation of timelines for transitional credit claims.

Justice Prathiba M Singh and Justice Shail Jain considered the matter and noted that the impugned order rejected the claim on two grounds, the ST-3 Return did not reflect the credit claimed, and the petitioner failed to submit all relevant supporting documents for the TRAN-1 claim.

The Court observed that the transition from the old portal to the GST portal was not the only reason for rejection, and that the petitioner had submitted only a Chartered Accountant’s certificate and limited documents. The rejoinder acknowledged difficulties in collecting the necessary documents.

The High Court held that the impugned order was appealable and there was no jurisdictional error or arbitrary exercise of power that justified interference under writ jurisdiction. The petitioner remained free to challenge the order through an appeal under Section 107 of the CGST Act.

The bench permitted the petitioner to file an appeal against the impugned order dated 21st August, 2023, and granted time until 15th November, 2025, to approach the Appellate Authority with the required pre-deposit.

The Court allowed the petitioner to submit any further documents supporting the claim for transitional credit of Rs. 9.34 crores as part of the appeal. It further held that if the appeal was filed within the prescribed time, it would not be dismissed on the ground of limitation and would be decided on merits. In case the transitional credit was finally allowed, the pre-deposit along with statutory interest would be refunded.

The petition was disposed of on these terms, and all pending applications, if any, were also disposed of.

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