Case Law Details
Sikka Motors Pvt. Ltd. Vs Commissioner, Central Goods And Service Tax & Ors. (Delhi High Court)
Learned counsel for the Petitioner points out that in the present case, the eligibility of the Petitioner to claim ITC has not been doubted by the Respondents. However, for no fault of the Petitioner, despite filing the form GST TRAN–1 claiming ITC in time, it was compelled to reverse the claim and this was no longer reflected in its electronic ledger.
The entire GST system is still in a trial and error phase and it will be too much of a burden to place on the Assessees to expect them to comply with the requirement of the law where they are unable to even connect with the system on account of network failures or other failures.
There is merit in the contention of the Petitioner that in its case, if it was not able to even connect with the server, then at the end of the Respondents, the fact of a failed attempt at filing a return may not even be registered on the system.
The Court therefore, directs that the Respondents to immediately process the Petitioner’s representation dated 28th March 2019 and either reflect the ITC claim of the Petitioner in the electronic credit ledger or communicate to the Petitioner the reasons for its inability to do so on or before 13th September 2019.
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