Clyde Pumps Private Limited Vs Union of India & Ors. (Delhi High Court)
Delhi High Court held that denial of benefit of Input Tax Credit [ITC] due to non-filing of TRAN-1 not justified since the form was not filed in time due to technical glitch in the GST portal or transitional creases which were ironed out subsequently. Accordingly, writ petition is allowed.
Facts- The Petitioner-M/s Clyde Pumps Private Limited, a Delhi based company has filed the present petition under Article 226 of the Constitution of India, inter alia, seeking transferring of the CENVAT credit admissible as Input Tax Credit of Rs.99,18,972/-.
For the period between March, 2017 to June, 2017, after the GST regime had been introduced, the Petitioner could file a form TRAN-1 to avail the transitional credit u/s. 140 of the Central Goods and Services Tax Act, 2017. The Petitioner had ITC to the tune of Rs.99,18,972/- as closing balance which ought to have been allowed to be carried forward under the GST regime. However, the same could not be availed of in terms of Rule 39(1)(a) of the Central Goods and Services Tax Rules, 2017 due the fact that at the relevant point in time, the transition was not permitted on the GST portal. After the transition took place, the credit was not reflected on the portal of the Petitioner leading to repeated representations being made by the Petitioner for reflection of the credit on the portal. However, the same was not allowed by the Department which has led to the filing of the present petition.
