Madras HC Orders Authority to Open Filing for GST ITC Benefits

The Madras High Court ordered the GST Authority to permit for furnishing the amended Form TRAN-1 by beginning the GST portal as an advantage of Input Tax Credit (ITC) would not be disappointed on the basis of technicalities.

The respondent, M/s.Bharat Electronics Limited had filed a claim for Input Tax / CENVAT Credit via filing form TRAN-1, admittedly, in time and revealed a credit of INR 14,97,28,201/- as Balance Credit in Column 5(a) of filing TRAN-1 form while conferring a sum of Rs.80,98,936/- in Column 6 of form TRAN-I, but the respondent needs to have revealed the sum of INR 14,97,28,201/- in Column 6 of filing form TRAN 1 as well, on an erroneous / mid-construction as to the purpose of the said column in form TRAN-1.

Beneath the current/ former indirect tax laws the Input Tax / CENVAT Credit was available these laws comprised of VAT, Central Excise & Service Tax, and Entry Tax both the State and Union intended for giving a method for the transition of credit which was legally earned and yet not used beneath several financial laws lasts during the GST start. Through the admitted purpose the GST law allowed the enrolled/taxable individual beneath the GST law to transition the credit which was earned and have the same in the credit of these registered/taxable individuals beneath the current GST law.

Justice Pushpa Sathyanarayan and Justice Mohammed Shafiq held that if there is considerable compliance, refusal of advantage of GST ITC which is the advantageous policy and prescribed as the bigger public interest to draw the rise effect of various taxes which should not be misunderstood on the technical issues.

Considering the above case the court offers the order of the single judge in pointing the applicant to subject the respondent to furnish the amended Form TRAN-1, through opening the portal and these practices are to be finished in 8 weeks from the issue date of the order.