HC Permitted Assessee to Rectify Mistake Who Entered Amount in Wrong Table While Filing Return TRAN-1

Case Details: Calcutta Radio Service (P.) Ltd. v. Union of India - [2024] 160 taxmann.com 348 (Calcutta)

Judiciary and Counsel Details

• • T. S. Sivagnanam, CJ. & Hiranmay Bhattacharyya, J.
  • Rishi Raju, Abhisek Tibrewal & Suvranil Saha for the Appellant.
  • K.K. Maiti & Tapan Bhanja, CGST for the Respondent.

Facts of the Case

The assessee was registered dealer under the provisions of the erstwhile Value Added Tax Act and subsequently migrated under the GST Act. While filing the return in TRAN-1, it entered amount in a wrong table due to technical misunderstanding, as a result of which, the amount was credited to CGST account.

It submitted a representation to the authority requesting to provide them facility of filing TRAN-1 and 2 which were available on GST Portal till 30-11-2022 but there was no response by GST Authority. Thereafter, the GST Authority proceeded to issue show cause notice. It submitted reply and explained that it was bona fide mistake but the Authority issued order and confirmed demand. It filed writ petition against the demand order.

High Court Held

The Honorable High Court noted that the Adjudicating Authority candidly accepted fact that a mistake had occurred. The transitional credit could not be denied on account of technical error which was an inadvertent error. Therefore, it was held that the Adjudicating Authority was to be directed to enable assessee to rectify mistake and submit Form GST TRAN-1 under relevant table and if admissible, extend transitional credit to assessee.

List of Cases Referred to

• • GST Network v. Leo Distributors [2020] 117 taxmann.com 672/80 GST 575 (Ker.) (para 10)
  • S V Halavagali & Sons v. Superintendent of Central Excise [2023] 157 taxmann.com 711/2024 (81) G.S.T.L. 382/(2023) 13 Centax 343 (Kar.) (para 10)
  • G & C Infra Innovations v. Union of India [2022] 142 taxmann.com 214/2022 (65) G.S.T.L. 17 (Ker.) (para 10)
  • Brand Equity Treaties Ltd. v. Union of India [2020] 116 taxmann.com 415/2020 (38) G.S.T.L. 10 (Delhi) (para 10)
  • Blue Bird Pure (P.) Ltd. v. Union of India [2019] 108 taxmann.com 218/75 GST 59/2019 (29) G.S.T.L. 660 (Delhi) (para 10).