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.

Online GST Course by Bimal Jain

Recorded: Certified Advanced GST Course

Course Details: Certificate of Participation will be Provided, Free GST Updates on E-mail, WhatsApp, Telegram for 1 Year, Background Material and PPT will be Provided on the downloadable basis, Total 21 Recorded Sessions (60 Hours), will be available for 120 hours or 60 Days whichever expires earlier.

For Registration:- https://cutt.ly/hxjl5Cu

Recorded: GST Course on Exports, Deemed Exports, SEZ, Imports, Merchandise Exports, Inverted Duty Structure (including Refunds)

Course Details: 6 Online Recorded Sessions of 2.30Hrs each with Background Material (BGM)

For Registration:- https://cutt.ly/pvw7mzl

For more details, Call: +91-8076563802, E-mail: intern@a2ztaxcorp.com, Web: www.a2ztaxcorp.in

DISCLAIMER: The views expressed are strictly of the author and A2Z Taxcorp LLP. The contents of this article are solely for informational purpose and for the reader’s personal non-commercial use. It does not constitute professional advice or recommendation of firm. Neither the author nor firm and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any information in this article nor for any actions taken in reliance thereon. Further, no portion of our article or newsletter should be used for any purpose(s) unless authorized in writing and we reserve a legal right for any infringement on usage of our article or newsletter without prior permission.

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.

Online GST Course by Bimal Jain

Recorded: Certified Advanced GST Course

Course Details: Certificate of Participation will be Provided, Free GST Updates on E-mail, WhatsApp, Telegram for 1 Year, Background Material and PPT will be Provided on the downloadable basis, Total 21 Recorded Sessions (60 Hours), will be available for 120 hours or 60 Days whichever expires earlier.

For Registration:- https://cutt.ly/hxjl5Cu

Recorded: GST Course on Exports, Deemed Exports, SEZ, Imports, Merchandise Exports, Inverted Duty Structure (including Refunds)

Course Details: 6 Online Recorded Sessions of 2.30Hrs each with Background Material (BGM)

For Registration:- https://cutt.ly/pvw7mzl

For more details, Call: +91-8076563802, E-mail: intern@a2ztaxcorp.com, Web: www.a2ztaxcorp.in

DISCLAIMER: The views expressed are strictly of the author and A2Z Taxcorp LLP. The contents of this article are solely for informational purpose and for the reader’s personal non-commercial use. It does not constitute professional advice or recommendation of firm. Neither the author nor firm and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any information in this article nor for any actions taken in reliance thereon. Further, no portion of our article or newsletter should be used for any purpose(s) unless authorized in writing and we reserve a legal right for any infringement on usage of our article or newsletter without prior permission.

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.

Online GST Course by Bimal Jain

Recorded: Certified Advanced GST Course

Course Details: Certificate of Participation will be Provided, Free GST Updates on E-mail, WhatsApp, Telegram for 1 Year, Background Material and PPT will be Provided on the downloadable basis, Total 21 Recorded Sessions (60 Hours), will be available for 120 hours or 60 Days whichever expires earlier.

For Registration:- https://cutt.ly/hxjl5Cu

Recorded: GST Course on Exports, Deemed Exports, SEZ, Imports, Merchandise Exports, Inverted Duty Structure (including Refunds)

Course Details: 6 Online Recorded Sessions of 2.30Hrs each with Background Material (BGM)

For Registration:- https://cutt.ly/pvw7mzl

For more details, Call: +91-8076563802, E-mail: intern@a2ztaxcorp.com, Web: www.a2ztaxcorp.in

DISCLAIMER: The views expressed are strictly of the author and A2Z Taxcorp LLP. The contents of this article are solely for informational purpose and for the reader’s personal non-commercial use. It does not constitute professional advice or recommendation of firm. Neither the author nor firm and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any information in this article nor for any actions taken in reliance thereon. Further, no portion of our article or newsletter should be used for any purpose(s) unless authorized in writing and we reserve a legal right for any infringement on usage of our article or newsletter without prior permission.