Assessee was allowed to file Individual Tax Credit in GSTR-3B returns due to ineligibility to file TRAN-1.

Case Details:

Issue- In the above case, the appeals by the Central Government are directed against a common order passed by the learned Single Judge in a bunch of writ petitions filed by the respondents praying for allowing them to file/upload GST TRAN-1 or to permit them to file revised TRAN-1 form. The learned Single Judge by the impugned order directed the GSTN Authorities, who manage to open the portal for the writ petitioners till March 31, 2020. This direction was issued to enable each of the writ petitioners to comply with whatever they had to do with their returns. It was required to examine as to whether the order or direction passed by the learned Single Judge was appropriate or otherwise.

Held- It was held that the decisions of different court clearly brought out the difficulties faced by the assessees and also as to how the assessees having substantially complied with the requirement under law and having been entitled to credit on account of transition to the GST regime which is beyond the purview of the assessee and the assessee cannot be put to prejudice on account of technicalities. Thus, keeping the underlying principle in mind if the matter is examined then we are inclined to lean in favour of the writ petitioners and affirm the directions issued by the learned Single Judge. We note from the directions issued by the learned Single Judge that the authorities have been directed to open the portal so that the assessee may be able to file their respective TRAN-1 return or revise return or re-revise return. In our considered view, this would be a difficult exercise and such cannot be run by the assessing Officer in whose jurisdiction the assessee is carrying business. It probably will have to be done at the very higher level and consequently direction, if any, issued to open the portal, would become unworkable qua prayer made by the writ petitioners. While pondering on the face of the issue, we refer the decision of the Punjab and Haryana High Court in the case of Hans Raj Sons v. Union of India [2020] 114 taxmann.com 607. In the said decision the Court while allowing the writ petition had granted two options one by directing opening of the portal and in case of non-opening of portal the writ petitioner/assessee will be entitled to make unutilized credit in their GST 3B forms to be filed on the monthly basis. This in our considered view, will be a workable solution and the Assessing Officer will be entitled to examine the legality of the claim on such form being filed by the assessee. For the above reasons, the miscellaneous appeals and the connected applications are dismissed and the order and directions issued by the learned Single Judge is slightly modified by granting liberty to the writ petitioner/assessee to file individual tax credit in GSTR-3B Forms for the month of January, 2022 to be filed in the month of February, 2022 and the concerned authority/Assessing Officer would be at liberty to verify the genuineness of the claim.