Airports Authority of India Vs Union of India & Ors. (Delhi High Court)
The Delhi High Court refused to overturn a GST authority’s order that denied the Airports Authority of India (AAI) a CENVAT Credit claim of Rs. 9.34 crores. The dispute centered on CENVAT Credit relating to the period just before the transition to the GST regime (April to June 2017). AAI had initially claimed a lower amount of credit (Rs. 8.06 crores) in its original ST-3 Return (the service tax return under the erstwhile regime). AAI argued that a subsequent attempt to amend the ST-3 Return to claim the total amount of Rs. 17.40 crores (including the additional Rs. 9.34 crores) was unsuccessful due to a software glitch on the portal, as the GST regime had set in. Consequently, AAI claimed the full amount via the TRAN-1 Form (the transition form). The Adjudicating Authority, however, rejected the claim for the additional Rs. 9.34 crores because it was not reflected in the ST-3 Return, a requirement under Section 140 of the CGST Act, 2017.
While AAI contended the denial was due to a software limitation, citing a Supreme Court ruling that suggested software issues shouldn’t justify denying benefits, the Department countered that the rejection was also based on AAI’s failure to furnish supporting documents. The Department stated that despite being asked for various documents, including copies of invoices and payment proofs, to verify the legitimacy of the credit, AAI provided an incomplete reply. The Delhi High Court reviewed the matter and noted that AAI did not deny the non-submission of documents in its rejoinder. The bench, comprising Justices Prathiba M. Singh and Shail Jain, concluded that the rejection was not solely due to the portal’s limitations but also the petitioner’s failure to submit necessary documentation to support the Rs. 9.34 crores claim.
