Ezzy Electricals VS State Of Gujarat

In this writ application filed under Article 226 of the Constitution of India, the petitioner, a proprietary concern represented by its proprietor, has sought several reliefs pertaining to the claiming of input tax credit (ITC) under Section 18(1)(c) of the Goods and Services Tax (GST) Acts.

The petitioner has requested the Hon’ble Court to issue a writ of mandamus, or any other appropriate writ or order, directing the respondents (presumably the concerned authorities) to allow them to upload Form GST ITC-01 on the online portal. This form is essential for claiming input tax credit under the aforementioned section of the GST Acts.

Additionally, the petitioner has alternatively requested the Court to issue a writ of mandamus, or any other appropriate writ or order, directing the respondents to grant input tax credit to them through any other feasible mode if uploading Form GST ITC-01 on the online portal is not possible.

Furthermore, the petitioner has urged the Court to, during the pendency of the case, direct the respondents to allow them to upload Form GST ITC-01 on the online portal for claiming input tax credit under Section 18(1)(c) of the GST Act.

It appears that the petitioner is facing challenges or obstacles in availing input tax credit under the GST Acts, possibly due to issues related to the online portal or procedural hurdles. Hence, they have approached the Court seeking its intervention to ensure their rights under the GST Acts are upheld and to facilitate the claiming of input tax credit as provided for under Section 18(1)(c) of the said Acts.

The writ application under Article 226 of the Constitution of India seeks relief from the court for a proprietary concern, represented by its proprietor. The petitioner has requested the following reliefs:

A. To issue a writ of mandamus or any appropriate writ, directing the respondents to allow the petitioner to upload Form GST ITC-01 on the online portal for claiming input tax credit under Section 18(1)(c) of the GST Acts. 

B. Alternatively, to issue a writ directing the respondents to grant input tax credit under Section 18(1)(c) of the GST Acts to the petitioner in any other possible mode. 

C. Pending notice, admission, and final hearing of the petition, to direct the respondents to allow the petitioner to upload Form GST ITC-01 on the online portal for claiming input tax credit under Section 18(1)(c) of the GST Act. Ex parte ad interim relief is sought in terms of prayer C. E. To grant any further relief deemed fit in the facts and circumstances of the case in the interest of justice.

The facts of the litigation are briefly outlined in an order dated February 2, 2022, where it is stated that the writ applicant is a proprietary concern. The applicant was eligible for the composition scheme under Section 10 of the GST Act and was registered under this scheme until March 31, 2018. Subsequently, the applicant opted out of the composition scheme effective April 1, 2018, and filed the necessary Form GST CMP – 04 on March 31, 2018.

Upon ceasing to pay tax under the composition scheme, the applicant became entitled to claim Input Tax Credit of the goods held in stock as of the transition date, as per Section 18(1)(c) of the GST Act. The conditions for claiming such Input Tax Credit are stipulated in Rule 40 of the Central/Gujarat Goods and Services Tax Rules, 2017.

It is acknowledged that for the purpose of claiming Input Tax Credit under Section 18(1)(c) of the GST Act, Form GST ITC – 01 should have been filed within 30 days from the date of becoming eligible, or within such extended time period as may be granted by the Commissioner.

However, it appears that the petitioner faced technical issues in operating the GST Portal, preventing them from uploading Form ITC – 01 within the stipulated time frame. Although attempts were made to upload the form within the extended time limit as per a notification dated September 17, 2018, the portal generated an error report, hindering the filing process.

In light of these circumstances, the writ applicant has approached the court seeking relief to rectify the situation and enable them to claim the input tax credit rightfully due to them under the GST Act.

The case presented under Article 226 of the Constitution of India involves a writ application by a proprietary concern seeking relief regarding the claiming of input tax credit (ITC) under Section 18(1)(c) of the Goods and Services Tax (GST) Act. The applicant has petitioned the court for several reliefs, primarily to allow the uploading of Form GST ITC-01 on the online portal for claiming ITC or, alternatively, to grant ITC through any other feasible mode. Pending the hearing, the applicant requests interim relief to upload the form.

The case revolves around the applicant’s transition from the composition scheme under Section 10 of the GST Act. The applicant, registered under this scheme until March 31, 2018, opted out of it effective April 1, 2018. According to Section 18(1)(c) of the GST Act, upon ceasing to pay tax under the composition scheme, the applicant became eligible to claim ITC for goods held in stock as of the transition date. The conditions for claiming ITC are outlined in Rule 40 of the Central/Gujarat Goods and Services Tax Rules, 2017.

However, the applicant faced technical difficulties while attempting to upload Form ITC-01 within the prescribed timeframe. Despite multiple requests to the authorities, the applicant remained unable to submit the form. The respondent’s affidavit-in-reply contests the applicant’s claims, asserting that no technical glitches were observed on the GST portal in the applicant’s case. They argue that the applicant used an incorrect offline tool for filing ITC-01 and provide technical details to support their stance.

The court, having heard arguments from both sides, must now determine whether the applicant’s difficulties in uploading the form were indeed due to technical glitches as claimed or if they were a result of using an incorrect tool. The resolution of this issue will determine the applicant’s eligibility for claiming ITC and the subsequent relief sought.

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