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Reasonable opportunity to rectify Tran-2 should be allowed

Shanti Prime Publication Pvt. Ltd.

Filing of Return — In the instant case, Petitioners have sought a direction upon the respondents to allow them to revise/rectify their Form GST TRAN-2 electronically or manually.
Petitioners contend that the present scheme of things does not allow rectification or revision of the TRAN-2 form and such a lacuna violates Article 14 of the Constitution.  An assessee should be allowed to revise or rectify TRAN-2 form particularly when TRAN-1 forms are allowed to be revised or rectified. The authorities must have similar provisions as akin to rule 120A of the CGST Rules, 2017.
Held that— Taxing statutes are to be strictly construed but such interpretation should not lead to a reckless or a mindless mechanical application of the statute.
Form GST TRAN-2, at best, is an admission of the person filing the same with regard to the contents of the document. A person making an admission is entitled to prove that the admission was made by mistake or was untrue. If, a person making the admission is able to substantiate with cogent evidence that the admission was a mistake or was untrue, then such facts have to be taken into consideration for the purpose of deciding the evidentiary value of the admission and relevancy thereof. In other words, law permits a person making an admission, the liberty of explaining the same, if he so chooses. Form GST TRAN-2, at best, can be an admission allowing the authorities to inform the state of affairs of the petitioner in relation to the subject matter governed by such form.
However, neither the Act nor the Rules of 2017 can be read to mean that the same excludes the right of a person making an admission to forfeit the opportunity to explain it. Neither the Act nor the Rules of 2017 forfeits the right of a person making an admission to substantiate that such admission was made by mistake or was untrue. Therefore, when such a person is seeking to correct form GST TRAN-2 on his own, an opportunity should be afforded to such person to correct the same - the authorities may retain the original GST TRAN-2 form for their assessment purpose and can confront the person seeking to revise the GST TRAN-2 with the form as originally filed and require explanation as to why such revision was required and whether such revisions are justified or not.  such an enquiry can be held in the assessment proceedings.
Authorities are directed to allow the petitioner to file a revised Form GST TRAN-2 either electronically or manually, in accordance with law, within four weeks. — Optival Health Solutions Private Limited & Anr. Vs. Union of India & Ors. [2019] 9 TAXLOK.COM 026 (Calcutta)