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IN THE HIGH COURT OF KERALA AT ERNAKULAM
ZIYAD RAHMAN A.A.
M.P. Rappai And Sons, Represented By Its Managing Partner, Sri. M. R. Francis – Appellant
Versus
Union Of India, Represented By Its Secretary (Revenue) Ministry Of Finance, Department Of Revenue, Government Of India – Respondent
JUDGMENT :
ZIYAD RAHMAN A.A., J.
The petitioner was a registered dealer under the provisions of the Kerala Value Added Tax Act and upon introduction of the CGST/KSGST Acts, with effect from 01.07.2017, the petitioner migrated to GST by obtaining a registration under the said Act as the registered taxpayer. The dispute in this writ petition pertains to the denial of Input Tax Credit, that was available to the petitioner pertaining to the pre-GST period; to be precise, for the period from April 2017 to June 2017. Section 140 of the CGST Act contemplates the transitional arrangements for the claim of Input Tax Credit, and Sub Section (1) of Section 140 provides that, a registered person, other than a person opting to pay tax under section 10, shall be entitled to take, in his electronic credit ledger, the amount of CENVAT credit of eligible duties carried forward in the return relating to the period ending with the day immediately preceding the appointed day, furnished by him in such manner as may be prescribed.
2. According to the petitioner, as the petitioner was having Input Tax Credit in respect of the transactions pertaining to the period referred to above, which were during pre
Input Tax Credit is a property right; denial due to clerical errors is unjustified, emphasizing necessity for the taxpayer to correct mistakes without losing entitled benefits.
The entitlement to Input Tax Credit cannot be denied on account of procedural problems and technical glitches.
The court affirmed the right to Transitional Input Tax Credit under Section 140 and mandated timely verification of claims without delay caused by technical issues.
Inadvertent and genuine mistakes in filing the TRAN-1 Form should not preclude taxpayers from having their claims examined by the authorities, and the lack of sufficient time provided to upload the d....
The main legal point established is that technical difficulties on the common portal can entitle a taxpayer to the benefit of Rule 117(1A) of the CGST Rules, 2017, allowing for the processing of the ....
Inadvertent errors in GST form filings should not prevent taxpayers from claiming transitional input tax credit, ensuring equitable access to rights under GST regulations.
Taxpayers facing technical difficulties on the GST portal are entitled to process their TRAN-1 Forms manually and claim the input tax credit which they are eligible for.
The court established that procedural timelines should not infringe upon vested rights to claim tax credits, especially in light of technical challenges faced by taxpayers.
The period prescribed under Rule 117 of the Rules for filing the TRAN-1 Form was merely directory and not mandatory.
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