Asian Polymers Vs. Union of India

The present petition under Article 226 of the Constitution of India seeks the following reliefs: i) Issue a writ of mandamus or any other writ, order or direction in the nature thereof thereby directing the Respondents to open the Portal to enable the Petitioner to file its claim of tax credit on the stock held on 30.6.2017 in Form Trans-1, which the Petitioner could not do for reasons beyond its control due to glitches in the system of the Respondents; ii) Issue a writ of declaration or any other writ, order or direction in the nature thereof declaring that Rule 117 of the CGST Rules, 2017, is ultra vires section 140 and 174 of the CGST Act, 2017; iii) for such further and other reliefs, as this Hon’ble Court may deem fit and proper in the nature and circumstances of the case. The case of the Petitioner, as set out in the petition, is that it is engaged in the business of sale and purchase of plastic granules and is registered under the Central Goods and Service Tax Act, 2017 (hereinafter referred to as the ‘CGST Act’). The Petitioner was entitled to transition of credit of the amount of excise duty in terms of Section 140 (3) of the CGST Act. In order to avail transition of credit, the Petitioner was required to submit a declaration in Form GST TRAN-1 on the GST Portal within the stipulated period of 90 days. Since a large number of taxpayers could not complete the process within the aforesaid period on account of technical glitches and difficulties faced by them, the government extended the time period for filing TRAN-1 several times and, lastly, on the recommendation of the GST Council, it was extended up to 27.12.2017. The Petitioner further states that despite the extensions, it was unable to file the TRAN-1 form due to continuous technical issues on the GST portal, which were beyond its control. The Petitioner has provided numerous communications with the GST helpdesk and relevant authorities, highlighting these technical issues and seeking assistance, but to no avail. The failure to file TRAN-1 has resulted in a significant financial burden on the Petitioner as it has been unable to claim the transitional credit of excise duty, which it is rightfully entitled to. The Petitioner contends that Rule 117 of the CGST Rules, 2017, which imposes a time limit on filing the TRAN-1 form, is ultra vires the CGST Act and is unconstitutional as it violates the Petitioner’s right to carry on business under Article 19(1)(g) of the Constitution of India. The Petitioner argues that the imposition of a time limit for availing transitional credit is arbitrary, unreasonable, and not in consonance with the legislative intent of the CGST Act. The Petitioner also highlights that other High Courts, in similar matters, have granted relief to taxpayers facing similar issues, directing the authorities to reopen the portal or accept manual filings of TRAN-1 forms. The Petitioner submits that despite repeated representations and requests to the Respondents, no remedial action has been taken to address the grievances faced by the Petitioner. The Petitioner emphasizes the need for judicial intervention to ensure that it is not deprived of its rightful transitional credit due to no fault of its own. The Petitioner, therefore, prays for the issuance of appropriate writs and directions to the Respondents to enable it to file its TRAN-1 form and avail the transitional credit of excise duty, which is crucial for the smooth functioning of its business. The Petitioner also seeks a declaration that Rule 117 of the CGST Rules, 2017, is ultra vires the CGST Act and unconstitutional, thereby ensuring that other taxpayers do not face similar hardships in the future. The relief sought by the Petitioner is essential to uphold the principles of natural justice and prevent undue hardship caused by technical glitches in the GST system.