Court directed Department either change GST portal to file TRAN-1 to claim ITC or to accept returns manually

In Ashok Kumar Meher v. Commissioner of Sales Tax & GST, Odisha, Cuttack & Ors., the Hon’ble Orissa High Court ruled in Ashok Kumar Meher v. Commissioner of Sales Tax & GST, Odisha, Cuttack & Ors. [W. P. (C) No. 12763 of 2021, dated December 1, 2021] urged the Revenue Department to either adapt the GST site to permit TRAN-1 filing to claim the ITC or accept returns manually against the previous registration certificate.

Facts:

Ashok Kumar Meher (“the Petitioner”) has filed this petition to have the Registration Certificate (“RC”) restored in accordance with the order dated September 17, 2018 (“the Restoration Order”) issued by the Revenue Department (“the Respondent”) in Revision Case No.193/2018-19 in favour of the Petitioner. The Petitioner, on the other hand, acquired a fresh RC.

The Respondent contended that because the Petitioner was granted a new registration, the Restoration Order could not be supported by the system, namely the VATIS Portal, and that even if the Petitioner is willing to surrender the new registration, the old registration cannot be restored to him because he voluntarily applied for a new registration. Furthermore, the stage for filing TRAN-1 forms has already been reached, therefore restoring the Petitioner’s prior registration number would be futile.

Held:

In W. P. (C) No. 12763 of 2021, dated December 1, 2021, the Hon’ble Orissa High Court held as follows:

• It should be noted that the Petitioner’s RC given originally under the Orissa Value Added Tax Act (“OVAT Act”) was cancelled because the Petitioner failed to file returns. It was further said that because the RC was cancelled under the OVAT Act, the Petitioner was unable to file returns and was consequently forced to acquire a new registration.
• It was observed that the Respondent’s position in insisting on the Petitioner continuing new registration was unreasonable, especially given that the Respondent has yet to implement the Restoration Order while not challenging it.
• It was noted that the Petitioner sought legal remedies against the cancellation of its old RC, which was granted by the Restoration Order, but the Respondent did not follow through on the same.
• The Respondent was directed to restore the Petitioner’s old RC number and cancel the new RC number issued.
• Furthermore, the Respondent was directed to either modify or make adjustments in the GST portal to allow the Petitioner submitting TRAN-1 to claim the ITC or accept returns manually against the old RC so that the Petitioner may obtain the ITC within 8 weeks.
• It was clarified that the Petitioner will be free to seek other suitable legal remedies.

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