Delhi HC allowed petitioner to rectify error committed during filing TRAN-1 being procedural lapse, directed to open Portal

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  • Last Updated on 17 August, 2021

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Input tax credit

Case details: R.R. Distributors (P.) Ltd. v. Commissioner of Central Tax, GST, Delhi North - [2021] 129 taxmann.com 71 (Delhi)

Judiciary and Counsel Details

    • Manmohan and Sanjeev Narula, JJ. 
    • Rajesh Jain, Virag Tiwari, Deepak Gupta and Ramashish, Advs. for the Petitioner.
    • Avnish Singh, Adv. for the Respondent.

Facts of the Case

The petitioner was engaged in trading of paper and other like goods. It migrated from VAT into GST regime, and as on appointed date under GST laws, it had a closing stock of finished goods on which it was entitled to claim transitional input tax credit in terms of section 140(3) of CGST Act. It filed TRAN-1 Form for transitioning of ITC of VAT. Thereafter, it attempted to file TRAN-2 Form for availing transitional credit on stock but it was not allowed on ground that nothing was declared in part 7B of table 7(a) and 7(d) of TRANS-1 Form. It informed GSTN about the non-acceptance of TRAN-2 Form via email, however, no response was received till date. It filed writ petition seeking relief.

High Court Held

The Honorable High Court observed that in this case, the TRAN-1 Form was filed online but the facility to upload TRAN-2 Form was not available on the common portal as the petitioner had committed an inadvertent error in showing available stock of goods in proper table. The court relied on its own decisions in case of Bhargava Motors v. Union of India [2019] 106 taxmann.com 200/74 GST 340, and Kusum Enterprises (P.) Ltd. v. Union of India [2020] 114 taxmann.com 501 where it was held that inadvertent and genuine mistakes in filling up the correct details of credit in TRAN-1 Form should not preclude taxpayers from having claims examined by the authorities in accordance with law. Therefore, the Court directed the department to either open online portal so as to enable petitioner to file rectified TRAN-1 Form electronically, or accept same manually with necessary corrections.

List of Cases Referred to

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