Case Law Details
Bodal Chemicals Ltd. Vs Union of India (Gujarat High Court)
HC held that GST department cannot raise their hands in despair saying that it is not possible to correct or take care of the technical glitches. The writ applicant herein has been running from pillar to post requesting the respondents to provide a solution and take care of the technical error and glitch that occurred as regards furnishing the GSTR – 6 return for recording and distributing the ISD credit of Rs.20,52,989/-. As usual, there is no response at the end of the GSTN. The writ applicant is not allowed to distribute the ISD credit of Rs.20,52,989/- as the same has not been recorded, reported and declared in the GSTR – 6 return.
Mr. Tripathi is right in his submission that the credit is a tax paid by the registered person on input transactions and therefore, the credit of such tax already paid to the credit of the Central Government is a vested right of the person. Such vested right cannot be defeated on account of any irregularity in the system evolved by the Government.
For all the aforegoing reasons, this petition succeeds and is hereby allowed. The respondents are directed to allow the writ applicant to furnish manually the GSTR – 6 return with details of the ISD credit of Rs.20,52,989/- and also permit distribution of such credit to the constituents of the writ applicant. Let this entire exercise be undertaken within a period of six weeks from the date of the receipt of writ of this order.
FULL TEXT OF THE JUDGMENT/ORDER OF GUJARAT HIGH COURT
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Article 265 stipulates that no tax (including a GST) can be levied or collected without the authority of law. The principal purpose of GST law, therefore cannot be different from the principal purpose of any law, that is to say to SECURE AND PROTECT JUSTICE. GST law at any rate would have to be preceded by a recommendation of the GST Council which would have to conform to the guiding principle of “harmony” between the rights of taxable persons and their tax liabilities. As Kautilya said the ruler would have to collect taxes in the manner bees collect honey from flowers without damage to flowers.