Facts of the Case

The petitioner, M/S Anupam Electricals And Electronics, a proprietorship registered under the GST Act (GST TIN 09AEXPA7281G121), was initially registered under the Composition Scheme for FY 2022-23, but converted to the normal scheme with effect from 07.01.2023 after submitting a withdrawal from the Composition Scheme, owing to increased turnover between April and December 2022. On such conversion, the petitioner became entitled under Section 18(1)(c) of the SGST Act, 2017 to avail Input Tax Credit on stock of semi-finished/finished goods and capital goods held on the date of withdrawal, by furnishing a statement in Form GST ITC-01 within 30 days. Due to technical glitches on the GST portal, the petitioner was unable to file the ITC-01 Form within time, though it complied with Rule 40(1)(b) of the SGST Rules by preparing and certifying a summary of the eligible ITC on the lying stock. Despite approaching the authorities, no relief was granted, seemingly on the ground that the delay was attributable to the petitioner.

Issues Involved

  1. Whether the petitioner could be permitted to belatedly upload Form ITC-01 to claim transitional Input Tax Credit under Section 18(1)(c) of the SGST Act, given that the delay was caused by portal-side technical glitches.

Petitioner's Arguments

  • The delay in filing Form ITC-01 was caused by technical glitches on the GST Portal, not by any fault of the petitioner, and the petitioner had otherwise complied with Rule 40(1)(b) of the SGST Rules by preparing and certifying the ITC summary.
  • Reliance was placed on two Gujarat High Court decisions — M/s Pradip Chemanlal Mevada v. Union of India (R/Special Civil Application No.2560 of 2020) and Ezzy Electricals v. State of Gujarat (R/Special Civil Application No.13091 of 2020) — in which the respondents were directed to enable the petitioners to claim ITC by uploading Form ITC-01 despite delay, and similar relief was sought here.

Respondent's Arguments

  • The State respondents contended that the delay had occasioned at the instance of the petitioner and that it may not be entitled to the claimed benefit, though they did not dispute the indulgence granted by the Gujarat High Court in similar circumstances, and cited no contrary case law.

Court Order / Findings

  • The Court found that the petitioner's case was on the same footing as the petitioners before the Gujarat High Court, and, in the absence of any contrary case law cited by the respondents, held that the petitioner was equally entitled to the relief granted by the Gujarat High Court in Pradip Chemanlal Mevada and Ezzy Electricals.
  • The writ petition was disposed of directing the respondents to do the needful and ensure that the petitioner is permitted to upload Form ITC-01, enabling it to claim Input Tax Credit of Rs. 31,18,718/- under Section 18(1)(c) of the Act, within four weeks from service of the certified copy of the order.

Important Clarification

A taxpayer transitioning from the Composition Scheme to the normal GST scheme, who is prevented from filing Form ITC-01 within the 30-day window solely due to technical glitches on the GST portal — while otherwise complying with the documentary requirements under Rule 40(1)(b) of the SGST Rules — cannot be denied the transitional Input Tax Credit under Section 18(1)(c) merely because the statutory filing window has lapsed; courts will direct the department to enable belated uploading of the form.

Sections Involved

  • Section 18(1)(c) of the SGST Act, 2017 – entitles a person switching from the Composition Scheme to the normal scheme to avail ITC on eligible stock held on the date of switch.
  • Rule 40(1)(b) of the SGST Rules, 2017 – prescribes the requirement to furnish a certified statement of the ITC claim, along with the ITC-01 Form.

Decision – In Favour of

The decision was in favour of the Assessee, with the department directed to permit the petitioner to upload Form ITC-01 and claim the transitional ITC of Rs. 31,18,718/- within four weeks.

Case Details

  • Court: High Court of Judicature at Allahabad
  • Case Number: WRIT TAX No. - 881 of 2023
  • Neutral Citation: 2023:AHC:175105-DB
  • Coram: Hon'ble Pritinker Diwaker, Chief Justice and Hon'ble Ashutosh Srivastava, J.
  • Date of Order: 29 August 2023

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