Punjab & Haryana H.C. directs GST-Authority to permit the upload of TRAN-I, the petitioner may avail ITC in case of failure

In a significant judgement, the High Court of Punjab and Haryana has directed GST authorities to permit the upload TRAN-I on or before June 30, 2020, and in case of the respondent authority fails to do so, the petitioner would be at liberty to avail Input Tax Credit while filing GSTR-3B for July 2020. The petitioner who is engaged in the business of trading of paint was registered under the State VAT Act of 2003 and later under the GST Act of 2017. The petitioner was entitled to claim credit of duties paid on inputs and the credit of the value-added tax w.r.t. inputs held in stock, for which they were required to furnish details of the same while filing Form GST TRAN-1. However, the petitioner missed the deadline for the same, and as per a sub-rule under Rule 117, the Commissioner, on the recommendation of the GST Council may extend the date for submitting the declaration if the declaration could not be submitted due to technical difficulties. The High Court of Punjab and Haryana observed that "The Petitioner has challenged vires of Rule 117 (1A) of Rules; however, we do not think it appropriate to declare it invalid as we are of the considered opinion that petitioner is entitled to carry forward Cenvat Credit accrued under Central Excise Act, 1944. The Respondents have repeatedly extended the date to file TRAN-I where there was a technical glitch as per their understanding. Repeated extensions of the last date to file TRAN-I in case of technical glitches as understood by Respondent vindicate the claim of the petitioner that denial of unutilised credit to those dealers who are unable to furnish evidence of an attempt to upload TRAN-I would amount to a violation of Article 14 as well Article 300A of the Constitution of India."