IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 26TH DAY OF APRIL, 2019 BEFORE:
THE HON’BLE MRS. JUSTICE S.SUJATHA WRIT PETITION No.19076/2019 (T – RES) BETWEEN:
M/s ARVIND LIFESTYLE BRANDS LTD., DU PARC TRINITY 10TH FLOOR, 17, M.G. ROAD BANGALORE-560001 REP. BY SHRI SHIBU T.K., SENIOR MANAGER TAXATION ... PETITIONER [BY SRI RAVI RAGHAVAN, ADV.] AND:
1. THE UNION OF INDIA THROUGH ITS REVENUE SECRETARY DEPARTMENT OF REVENUE MINISTRY OF FINANCE 128-A/NORTH BLOCK NEW DELHI-110001 2. THE CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS THOURGH ITS CHAIRMAN NORTH BLOCK, NEW DELHI-110001 3. THE GOODS AND SERVICES TAX COUNCIL 5TH FLOOR, TOWER II, JEEVAN BHARTI BUILDING JANAPATH ROAD CONNAUGHT PLACE, NEW DELHI-110001 4. THE STATE OF KARNATAKA THROUGH THE GOVERNMENT PLEADER HIGH COURT OF KARNATAKA BENGALURU-560001 5. THE ASSISTANT COMMISSIONER OF CENTRAL TAX 3RD FLOOR, CRESCENT ROAD BANGALORE-560001 6. THE ASSISTANT COMMISSIONER OF COMMERCIAL TAX LGSTO-075, DVO-06, BANGALORE-560058 KARNATAKA 7. THE COMMISSIONER OF CENTRAL TAX BANGALORE SOUTH C.R. BUILDING, QUEENS ROAD BANGALORE-560001 KARNATAKA …RESPONDENTS [BY SRI VIKRAM HUILGOL, HCGP.] THIS WRIT PETITION IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA, PRAYING TO ISSUE DIRECTION UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA DIRECTING R-5 VIDE ANNEXURES-G & H DATED 16.11.2018 & 04.01.2018 TO ENABLE THE PETITIONER TO FILE FORM GST TRAN-2 EITHER ON THE COMMON PORTAL OR MANUALLY, IN WHATEVER SHORT PERIOD.
THIS PETITION COMING ON FOR PRELIMINARY HEARING, THIS DAY, THE COURT MADE THE FOLLOWING:-
O R D E R Learned High Court Government Pleader accepts notice for the respondents.
The petitioner has sought for a writ of mandamus directing respondent No.5 to consider Annexures – G and H dated 16.11.2018 and 04.01.2019 to enable the petitioner to file Form GST TRAN – 2 either on the common portal or manually.
2. The petitioner – Company is engaged in trading and supply of branded clothing and holding a plethora of fashion brands under their aegis. It is submitted that the petitioner was registered as a dealer under the Karnataka Value Added Tax Act, 2003. Subsequent to the GST regime coming into force with effect from 01.07.2017, the petitioner has obtained the registration under the Central Goods and Services Tax Act, 2017 (‘CGST Act, 2017’ for short).
3. The petitioner filed Form GST TRAN – 1 on 30.11.2017 to avail credit of the eligible duties in respect of inputs held in stock on the appointment day in respect of which duty paying documents were available. The petitioner attempted to file FORM GST TRAN – 2 on 28.03.2018 so as to carry forward credit to the extent of Rs.76,63,789/- but could not upload the Form due to technical error in not filling the details of inputs held in stock in table 7B of FORM GST TRAN – 1. The same not been accepted, the petitioner made complaint to respondent No.2 seeking redressal of the technical glitch. It is submitted that further the petitioner has approached respondent No.5 seeking redressal of the technical glitch and to enable the petitioner to file FORM GST TRAN – 2. However, the request of the petitioner made with respondents – authorities has not yielded any positive results. Hence, this writ petition.
4. Learned counsel Sri. Ravi Raghavan appearing for the petitioner would submit that at the time of filing FORM GST TRAN – 1, the portal of FORM GST TRAN – 2 was not yet opened. The petitioner by inadvertence has not mentioned the quantity of the goods held in stock in column 7B of FORM GST TRAN -
1. Reliance is placed on Section 140(3)(v) of the CGST Act, 2017 and the proviso thereof as well as the Rule 117 (4)(a)(ii) & (iii) of the Central Goods and Services Tax Rules, 2017 (‘CGST Rules, 2017’ for short) to contend that the petitioner is entitled to the transitional scheme for tax periods from the appointed date i.e., 01.07.2017. The technical error committed in the FORM GST TRAN -1 is the major flaw for the portal to accept FORM GST TRAN – 2. As such, the Nodal Officer appointed under the Circular dated 03.04.2018 is empowered to consider the request of the petitioner to accept FORM GST TRAN – 2.
5. Learned High Court Government Pleader appearing for the respondents does not dispute the factual position. However, he submits that it is not permissible for accepting the FORM GST TRAN – 2 unless the particulars of the same are made available in FORM GST TRAN – 1. The said technical glitch can be addressed by the Nodal Officer.
6. Heard the learned counsel appearing for the parties and perused the material on record.
7. It is not in dispute that the FORM GST TRAN – 2 portal was not available when the petitioner filed FORM GST TRAN – 1. In such circumstances, non- mentioning of certain quantity of goods held in stock in column 7B of FORM GST TRAN – 1 appears due to bonafide mistake or inadvertence. Hence, in terms of the Circular instructions dated 03.04.2018, the Nodal Officer is required to redress the grievance of the petitioner to enable the petitioner to file FORM GST TRAN – 2 within the time prescribed. The object and purpose of the transitional provisions has to be achieved to its logical end and the same cannot be rejected/denied on technicalities.
8. Hence, the respondent No.5 – Nodal Officer is directed to redress the grievance of the petitioner in accordance with law to enable the petitioner to file FORM GST TRAN – 2. The compliance of the same shall be in an expedite manner.
9. The petitioner shall appear before the respondent No.5 – Nodal Officer today (26.04.2019) at 3.00 p.m. Respondent No.5 shall consider the case of the petitioner and redress the grievance in accordance with law as aforesaid.
The writ petition stands disposed of accordingly. This order shall be communicated to respondent No.5 – Nodal Officer by the learned High Court Government Pleader appearing for the respondents forthwith.
Sd/- JUDGE PMR