Madras HC directs GST authority to allow filing of revised form TRAN-1 by opening GST Portal as benefit of ITC can’t be frustrated on ground of technicalities
In Commissioner of GST and Central Excise and Ors. v. M/s. Bharat Electronics Ltd. [W.A. No.2203 of 2021 dated November 18, 2021] Hon’ble Madras High Court held that if there is substantial compliance, denial of benefit of Input Tax Credit (ITC) which is a beneficial scheme and framed with the larger public interest of bringing down the cascading effect of multiple taxes ought not to be frustrated on the ground of technicalities.
M/s. Bharat Electronics Ltd. (“the Respondent”) had lodged a claim for Input Tax/CENVAT credit by filing form TRAN-1, admittedly, within time and disclosed a credit of Rs. 14,97,28,201/- as balance credit in Column 5(a) of form TRAN-1, while showing a sum of Rs. 80,98,936/- in Column 6 of form TRAN-1, though the Respondent ought to have disclosed the sum of Rs. 14,97,28,201/- in Column 6 of form TRAN-1 as well, on an erroneous/mis-construction as to the purpose of the said column in form TRAN-1.
Hon’ble Madras High Court vide order W.P. No. 2937 of 2019 dated June 21, 2021 directed the Commissioner of GST and Central Excise (“the Appellant”) to enable the Respondent to file a revised form TRAN-1, by opening of the portal, aggrieved by the said order, the Appellant preferred this intra Court appeal.
In the present case held that, if there is substantial compliance, denial of benefit of ITC which is a beneficial scheme and framed with the larger public interest of bringing down the cascading effect of multiple taxes ought not to be frustrated on the ground of technicalities.
Affirmed the order of the learned Single Judge in directing the Appellant in present case to enable the Respondent herein to file a revised Form TRAN-1, by opening of the portal and that such exercise is to be completed within a period of 8 weeks from the date of issue of this order.
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