The Calcutta High Court has asked to reconsider the claim of transitional credit considering the technical breach faced by taxpayer in getting the provisional ID for GST migration.
In connection with filing of the appeal the application for condonation of delay was filed by the petitioner Javed Ahmed Khan. Sufficient causes are pleaded in the application for delay for filing the appeal. Therefore, delay is condoned and permitted.
It was ruled by the appellant that the order passed via the authority rejecting transitional credit on 7th February 2023 is unfair and has been passed without considering the strange facts and cases which were faced by the appellant in the process of transition. Acknowledging the limited scope of the writ petition, with the consent of the learned advocates on either side, the appeal, along with the writ petition, is disposed of via this common ruling and order.
The order which was impugned in the writ petition dated 7th February 2023, has refused the TRAN-1 submitted via the appellant/writ petitioner on the foundation that the appellant had submitted an application for new registration in form GST REG-01 as per Rule 8 of the CGST Rules, 2017, on 23rd August 2017 and was approved on 8th November 2017 and as per that the appellant/writ petitioner had not submitted GSTR-3B returns for July 2017.
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Since the appellant/writ petitioner did not transit from the current law to the present law on the appointed day, i.e., on 1st July 2017, but took new registration, the whole claim of CGST in TRAN-1 of Rs 35,59,064 was rejected.
Therefore, it needs to be seen whether the appellant/writ petitioner had applied for registration as per Rule 8 of the CGST Rules, 2017. It emerges to be not a voluntary act of the appellant/writ petitioner but under certain direction given by the CBEC helpdesk. The appellant sent an email dated 27th June, 2017, to the CBEC helpdesk requesting to reissue a provisional ID for GST migration.
The appellant/ writ petitioner included a screenshot of the ST-2 to demonstrate a technical breach in getting the provisional ID necessary for GST migration. In response, the helpdesk sent an email dated August 16, 2017, acknowledging the appellant’s claim that they did not receive the provisional ID and password needed for migration to the GST. The helpdesk advised them to apply for a new registration on the GST Common Portal.
Following the advice provided by the CBEC helpdesk in an email dated August 16, 2017, the appellant/writ petitioner submitted an application for new registration on the GST Common Portal. Consequently, this application should not be considered voluntary but rather a requirement based on the helpdesk’s directions. Therefore, the appellant should not be denied consideration on this basis.
A division bench of Chief Justice, T. S. Sivagnanam and Justice Chaitali Chatterjee (Das) analyzed that the claim incurred via the appellant/writ petitioner for transitional credit would be required to be reconsidered keeping in mind that the application incurred via the appellant/writ petitioner for new registration was not voluntary but under the directive issued by the CBEC helpdesk.
The order has been set aside by the court, and the case is remanded to respondent No. 1, Deputy Commissioner of Revenue. State Tax, Ballygunge to acknowledge the application of the appellant/writ petitioner afresh, marking the incurred observations in the preceding paragraphs, which mandated to the effect that the filed application via the appellant/writ petitioner for new GST registration was not voluntary but on the direction issued via the department.
Concerning the same, the precise order shall be passed after furnishing the chance of a personal hearing to the appellant/writ petitioner within 3 weeks from the receipt date of a server copy of the order.
| Case Title | Javed Ahmed Khan vs. Deputy Commissioner of Revenue, State Tax |
| Citation | MAT 2126 of 2024 with CAN/1/2024 with CAN/2/2024 |
| Date | 25.03.2025 |
| Petitioner by | Mr Sandip Choraria, Mr Sukalpa Seal, Mr Rishav Manna |
| Represented by | Mr Md. T.M. Siddiqui, Mr N. Chatterjee, Mr T. Chakraborty, Mr S. Sanyal |
| Calcutta High Court | Read Order |
