Page 45 - GSTL_13th August 2020_Vol 39_Part 2

2020 ] SUBHAS & COMPANY v. COMMISSIONER OF CGST AND CX, KOLKATA NORTH 131
tax in respect of inputs, then, such registered person shall,
subject to such conditions, limitations and safeguards as may
be prescribed, including that the said taxable person shall pass
on the benefit of such credit by way of reduced prices to the
recipient be allowed to take credit at such rate and in such
manner as may be prescribed. Therefore, as per said rule the
registered dealer had to furnish details of the stock of goods
held in stock on the appointed date at the end of the month
and to furnish a statement in FORM GST TRAN-2 according-
ly.
5. In order to comply with the same the petitioner duly filled up a
SGST TRAN-1 within time and mentioned all the details required to be filled up
in said SGST. In order to claim the transitional credit in case of stock of goods as
on the appointed date but while trying to file a GST TRAN-2 the same could not
be filed because the utility was not availed till 27 December, 2017. The utility was
made available only after the due date to file GST TRAN-1. Due to such reason
the statement in Form GST TRAN-2 could not be filed since utility aforesaid was
not made available. The Government of India issued notification bearing No.
281-FT, dated 7th March, 2018 by way of which sub-clause (iii) of clause (b) of
sub-rule (4) of Rule 117 of the WBGST Rules, 2017 was substituted with immedi-
ate effect. Though over such substitution the assessees were directed to file GST
TRAN-2 within the time-limit of 31st March, 2018 or within such time as may be
extended by the respondent No. 4. Even after the due date technical issues while
filing the transitional form in FORM GST TRAN-1 and TRAN-2 and as such
could not be filed the same within the stipulated due date. Due to such issues
many dealers moved before the Hon’ble Courts of law to avail the benefit of the
transitional credit. Each and every Court, thereafter, allowed the assesses to file
GST TRAN-1 after the due date by directing the GST network to reopen the por-
tal so that the application may be filed online and if not, the assesees be allowed
to file GST TRAN-1 manually.
6. Accordingly, the petitioner has sought for issuance of writ in the na-
ture of mandamus directing the respondents to reopen GST TRAN-2 ought to ac-
cept manual TRAN-2 to allow the petitioner to claim transitional credit on ac-
count of goods held in stock as on the appointed date and further allow the peti-
tioner to set off transitional credit as claimed in GST with the tax liability under
Goods & Services Tax Law without payment of interest.
7. In order to buttress the statement Mr. Agarwal Learned Advocate for
the petitioner has invited my attention to the provisions under Section 140 of the
West Bengal Goods and Services Tax Act, 2017 and Rule 117 and Chapter XIV
relating to transitional provision being the rule framed thereunder and further
by my attention is invited to various decisions of the Hon’ble High Court and so
also observations made in M/s. Blue Bird Pure Pvt. Ltd. v. Union of India, 2019 SCC
Online 9250 = 2019 (29) G.S.T.L. 660 (Del.) where it is observed that Government
has acknowledged that on account of technical difficulties, the taxpayers were
indeed unable to file the statutory form within time and CBIC vide notification
issued from time to time, extended the date prescribed for filing of Form GST
TRAN-1 under Rule 117(1A) of the CGST Rules and the period, as on date, was
extended by various notifications reference is also made in unreported decision
of the Hon’ble High Court of Delhi in Brand Equity Treaties Limited v. The Union of
India & Ors. [2020 (38) G.S.T.L. 10 (Del.)] wherein it has been specifically ob-
served in Paragraph 22 that the provision (Rule 117) as being directory in nature,
insofar as it prescribes the time-limit for transitioning of credit and therefore, the
GST LAW TIMES  13th August 2020  45