HC Directed GST Authorities to Condone Delay and Permitted Assessee to File Form ITC-01

Case Details: Hari Om Arora v. Union of India - [2024] 164 taxmann.com 700 (Calcutta)

Judiciary and Counsel Details

• Raja Basu Chowdhury, J.
• Debdutta Raha & Abhishek Bhandari for the Petitioner.
• Md. T.M. Siddiqui, Tanoy Chakraborty, Saptak Sanyal, Vipul Kundalia, Ms Sangita Das & Anindya Kanon for the Respondent.

Facts of the Case

The assessee filed an application for transfer of GST file from ‘composition scheme’ to ‘normal scheme’ which was duly sanctioned. It was required to file and upload input tax credit certificate within 30 days from the date of approval. However, it couldn’t be uploaded in time for reasons of pandemic and medical ground of CA of the assessee.

It approached authorities for condonation of delay but the authorities did not condone delay. Thereafter, it filed writ petition and the Coordinate Bench had directed authorities to consider application for condonation but the Joint Commissioner held that he did not come across any provision in Act or Rules which permitted condonation of delay. It again filed petition against the rejection of application for condonation of delay.

High Court Held

The Honorable High Court noted that as per Rule 40(1)(b) of CGST Rules, the registered person shall within a period of 30 days from the date of becoming eligible to avail an input tax credit or within such further period as may be extended by the Commissioner by a notification in this behalf shall make a declaration, electronically, on the common portal in Form ITC-01. This provision specifically authorizes the Commissioner to extend the time. Therefore, the Court held that the department was directed to condone delay and permit assessee to file Form ITC-01.

List of Cases Reviewed

• Anupam Electricals & Electronics v. State of U.P., 2023:AHC:175105-DB., followed.
• Maqbul Ahmad v. Onkar Pratap Narain Singh, AIR 1935 PC 85, distinguished.

List of Cases Referred to

• Maqbul Ahmad & Ors. v. Onkar Pratap Narain Singh & Ors. AIR 1935 PC 85 (para 13).