Respondent is directed to enable filing of revised Form TRAN-1 by opening the portal.
Section 140 of the CGST Act, 2017 –– Transitional Credit––The respondent assessee challenged the action of the Revenue in not permitting them to revise the Form TRAN- 1. The Court in earlier decision directed the respondent/appellant to enable the petitioner/respondent to file a revised Form TRAN-1, by opening of the portal and that such exercise was to be completed within a period of 8 weeks. The Revenue, aggrieved by the above order of the Learned Single Judge has preferred this appeal. The appellant submitted that the respondent is not entitled to Cenvat Credit, as the mistake of filling the wrong figure in Column 6 of form TRAN-1 is fatal to the claim to transition of credit. The appellant further submitted that that Rule 120A does not enable an assessee / taxable person to rectify more than once and the respondent / assessee having already carried out a rectification, it is impermissible for the respondent / assessee to carry out one more correction. The court observed that they concur with the order of the learned Single Judge directing the respondent to enable filing of revised Form TRAN-1. The court relied upon the judgment of Punjab and Haryana High Court in the matter of Heritage Lifestyle and Developers and Private Limited vs. Union of India reported, wherein it was held that while dealing with the Cenvat Credit that it may be inappropriate to deny the benefit by taking a hyper-technical view of the rules. The court also observed that if there is substantial compliance, denial of benefit of ITC which is a beneficial scheme and framed with the larger public interest of bringing down the cascading effect of multiple taxes ought not to be frustrated on the ground of technicalities.
Held that:- The Hon’ble High Court affirmed the order of the learned Single Judge in directing the petitioner/ respondent to enable the respondent herein to file a revised Form TRAN-1, by opening of the portal and that such exercise is to be completed within a period of 8 weeks.
Respondent is directed to enable filing of revised Form TRAN-1 by opening the portal.
Section 140 of the CGST Act, 2017 –– Transitional Credit––The respondent assessee challenged the action of the Revenue in not permitting them to revise the Form TRAN- 1. The Court in earlier decision directed the respondent/appellant to enable the petitioner/respondent to file a revised Form TRAN-1, by opening of the portal and that such exercise was to be completed within a period of 8 weeks. The Revenue, aggrieved by the above order of the Learned Single Judge has preferred this appeal. The appellant submitted that the respondent is not entitled to Cenvat Credit, as the mistake of filling the wrong figure in Column 6 of form TRAN-1 is fatal to the claim to transition of credit. The appellant further submitted that that Rule 120A does not enable an assessee / taxable person to rectify more than once and the respondent / assessee having already carried out a rectification, it is impermissible for the respondent / assessee to carry out one more correction. The court observed that they concur with the order of the learned Single Judge directing the respondent to enable filing of revised Form TRAN-1. The court relied upon the judgment of Punjab and Haryana High Court in the matter of Heritage Lifestyle and Developers and Private Limited vs. Union of India reported, wherein it was held that while dealing with the Cenvat Credit that it may be inappropriate to deny the benefit by taking a hyper-technical view of the rules. The court also observed that if there is substantial compliance, denial of benefit of ITC which is a beneficial scheme and framed with the larger public interest of bringing down the cascading effect of multiple taxes ought not to be frustrated on the ground of technicalities.
Held that:- The Hon’ble High Court affirmed the order of the learned Single Judge in directing the petitioner/ respondent to enable the respondent herein to file a revised Form TRAN-1, by opening of the portal and that such exercise is to be completed within a period of 8 weeks.