The Bombay High Court while allowing the taxpayer to correct Form TRAN-1, has directed the department to consider the issue of whether Form TRAN-1 and other forms that would be filed or corrected by the petitioner can be entertained in accordance with provisions of section 140 of the Central Goods and Services Tax Act, 2017 and Rule 117 (1) of the Central Goods and Services Tax Rules, 2017 or not.
The petitioner/assessees filed Form TRAN-1, but inadvertently did not claim approximately Rs. 13,17,956 on the Form TRAN-1. There was no option available to the petitioner to revise the Form TRAN-1 after December 27, 2017. There was also a further condition of revising the form only once before the due date. The form TRAN-1 was not accepted. According to the petitioner, since the petitioner missed out on the claim of approximately Rs. 13,17,956, the petitioner prayed for permission by making a representation to correct the said mistake, which was not allowed.
The petitioner has challenged Rules 117 and 120A of the Central Goods and Services Tax Rules, 2017. The petitioners have sought the direction to the department to allow the revision of the Form TRAN-1 and Form TRAN-2 and allow the assessees to take credit under section 140(3) of the Central Goods and Services Tax Act, 2017 on the invoices missed out during the initial filing.
A division bench of Justice S.G. Mehare and Justice R.D. Dhanuka observed that “In our view, the interest of justice would be served if we allow the petitioner to correct Form TRAN-1 in Writ Petition No. 1609/2019 and to file Form TRAN-2 without prejudice to the rights and contentions of both the parties. The respondents shall consider the issue whether the Form TRAN-1 and other forms that would be filed/corrected by the petitioner can be entertained in accordance with the provisions of section 140 of the Central Goods and Services Tax Act, 2017 and Rule 117 (1) of the Central Goods and Services Tax Rules, 2017 or not.”
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