Can ITC be denied when tax payer unable to upload the Form ITC – 01 ITC of the goods held in stock as on the date of transition  optout from composite scheme due to  technical issues?

Can ITC be denied

Case Title

Ezzy Electricals vs State of Gujarat

Court

Ahmedabad High Court

Honorable Judges

Justice J.B.Pardiwala & Justice Nisha M.Thakore

Citation

2022 (2) GSTPanacea 252 HC Ahmedabad

C/SCA/13091/2020

Judgement Date

02-February-2022

Council for Petitioner

Uchit N Sheth

Council for Respondent

Utkarsh R Sharma

Section

Section 18(1)(c) of the G.S.T. Act

In Favour of

Favour of Assessee

The Ahmedabad High Court bench of Justice J.B.Pardiwala & Justice Nisha M.Thakore has held that Court expect the respondents, more particularly, the respondent No.5 to find out some via media by which the writ applicant is able to upload the Form once again and seek refund.

FACTS OF THE CASE

Writ applicant is that petitioner is a small size taxpayer and was eligible for composition scheme under Section 10 of the G.S.T. Act The writ applicant was registered under the said scheme till 31st March 2018. The writ applicant decided to opt out of the composition scheme w.e.f. 1st April 2018. In such circumstances, the writ applicant filed the necessary Form GST CMP – 04 on 31st March 2018 Once a person ceases to pay tax under the composition scheme, as envisaged under Section 10 of the G.S.T. Act, he becomes entitled to claim an Input Tax Credit of the goods held in stock as on the date of transition by virtue of Section 18(1)(c) of the G.S.T. Act Prima facie, it appears that the writ applicant was not in a position to operate the GST Portal on account of some technical issues. The writ applicant did tried to upload the Form ITC – 01 on the basis of the Notification dated 17th September 2018 i.e. well within the extended time limit. However, an error report was generated on the portal and the writ applicant was unable to file such Form. It is the case of the writ applicant that since 24th September 2018, for not less than 15 times, he requested the concerned authority to look into the matter and permit him to upload the Form ITC – 01. however, till this date, the concerned authority has not said anything in that regard

Can ITC be denied

COURT HELD

Considering the facts as recorded, held that court expect the respondents, more particularly, the respondent No.5 to find out some via media by which the writ applicant is able to upload the Form once again and seek refund.

Can ITC be denied

ANALYSIS OF THE JUDGEMENT

Prima facie, court are of the view that it will be too much at this point of time to tell the writ applicant that as he was not in a position to operate the portal properly, he should now forget to seek any refund. Court expect the respondents to try to find out some way having regard to the peculiar facts and circumstances of the case. Court request Mr. Sharma, the learned A.G.P. to speak to the respondents in this regard and revert to them by the next date of hearing.

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Ezzy Electricals

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Ahmedabad High Court