M/S Thai Mart vs. Union Of India And Others
(Allahabad High Court, Uttar Pradesh)

Case Law
Petitioner / Applicant
M/S Thai Mart
Respondent
Union Of India And Others
Court
Allahabad High Court
State
Uttar Pradesh
Date
Nov 23, 2020
Order No.
Writ Tax No. – 312 of 2020
TR Citation
2020 (11) TR 3536
Related HSN Chapter/s
N/A
Related HSN Code
N/A

ORDER

Heard learned counsel for the petitioner and Sri Ashok Singh, learned counsel for the respondents.

On 18.11.2020, this Court passed following order:-

1. Heard Sri Ambarish Chatterjee holding brief of Sri Pranjal Shukla, learned counsel for the petitioner, Sri Ashok Singh, learned counsel for the respondent nos. 4, 5 & 7 and Sri C.B. Tripathi, learned Special Counsel for respondent no.6.

2. None appears for respondent nos. 1, 2 and 3 although notice has been duly served upon the Additional Solicitor General of India, High Court, Allahabad.

3. In paragraph 5 of the writ petition, the petitioner has stated that he is primarily engaged in retail trade of cosmetics and readymade garments etc. and has GSTIN No.09ABIPG8976E1Z8, dated 26.06.2018. In paragraph 2, it is stated that the petitioner wanted to carry forward the tax credit pertaining to pre-GST period to the GST regime for which the Form TRAN – 1 for ₹ 90,496/- could not be filed due to technical glitch in the GSTN system. In paragraph 16 it is stated that the petitioner attempted to submit the revised TRAN-1 Form on 27.12.2017 but the GSTN system displayed the error message “some uploaded records are in progress; kindly submit once it is processed”. In paragraphs 17, 18 and 19 it is stated that further several attempts were made till midnight of 27.12.2017 but the entire attempts resulted in a futile exercise.

4. We find that Rule 117 of the CGST Rules, 2017 and the parameteria provisions of the U.P. GST Rules provides for carry forward of tax or duty credit under any existing laws or on goods held in stock on the appointed day. The appointed day under the GST regime was 01.07.2017.

5. Rule 117 (1) and (1A) provided for period for submission of TRAN 1 form, which is reproduced below:

“Tax or duty credit carried forward under any existing law or on goods held in stock on the appointed day

(1) Every registered person entitled to take credit of input tax under section 140 shall, within ninety days of the appointed day, submit a declaration electronically in FORM GST TRAN-1, duly signed, on the common portal specifying therein, separately, the amount of input tax credit of eligible duties and taxes, as defined in Explanation 2 to section 140, to which he is entitled under the provisions of the said section:

Provided that the Commissioner may, on the recommendations of the Council, extend the period of ninety days by a further period not exceeding ninety days:

Provided further that where the inputs have been received from an Export Oriented Unit or a unit located in Electronic Hardware Technology Park, the credit shall be allowed to the extent as provided in sub-rule (7) of rule 3 of the CENVAT Credit Rules, 2004:

(1A) Notwithstanding anything contained in sub-rule (1), the Commissioner may, on the recommendations of the Council, extend the date for submitting the declaration electronically in FORM GST TRAN-1 by a further period not beyond 31st March, 2020, in respect of registered persons who could not submit the said declaration by the due date on account of technical difficulties on the common portal and in respect of whom the Council has made a recommendation for such extension.”

6. Learned counsel for the Central GST and the learned Special Counsel for State GST could not inform as to whether any recommendation under sub – Rule (1 A) of Rule 117 was made by the Council and thereupon the Commissioner has extended the date for filing TRAN -1 form. They pray for and are granted three days’ time to obtain complete instructions in the matter particularly with regard to the recommendations of the Council and the order of the Commissioner for extension of time for filing TRAN -1 Form under sub – Rule 1/1A of Rule 117 of the CGST Rules/UPGST Rules.

7. Put up as a fresh case on 23.11.2020.

8. Learned Additional Solicitor General of India is requested to assist the Court on the next date fixed after obtaining complete instructions. Learned counsel for the petitioner shall inform this order in writing to the learned Additional Solicitor General of India within 24 hours.

Today, Sri Ashok Singh, learned counsel for the respondents states on written instructions of the Additional Commissioner (Legal) CGST, Ghaziabad dated 12/13.11.2020 that there is no evidence of error of submission/filing of TRAN-1 by the petitioner. Petitioner’s case was considered in the meeting held on 26.05.2020 at Serial No. 57 under sub-category B1 and was not allowed.

Sri C.B. Tripathi, learned special counsel for the respondent no.1 states on instruction of the Commissioner, Income Tax, Lucknow dated 19.11.2020 that time was extended under Rules 117 (1A) of UPGST Rules, firstly by order dated 17.09.2018, upto 31.01.2019, thereafter by order dated 31.01.2019, upto 31.03.2019 and lastly by order dated 07.02.2020, upto 31.03.2020. There is nothing on record to show that petitioner has ever attempted to file TRAN-1 during the extended period.

Consequently, we do not find any good reason to entertain the writ petition. The writ petition is dismissed. Copies of the instructions have been received by the learned counsel for the petitioner from Sri Ashok Singh, learned counsel for the respondents and Sri C.B. Tripathi, learned counsel for the respondent no.1 in Court.

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