Bombay HC asks Petitioners seeking amendment in GST TRAN 1 to make representation before CBIC; directs CBIC to address within 12 weeks

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In a petition seeking amendment in GST Form TRAN 1 due to typo errors made while filing GST TRAN-1, a two-judge bench of the Bombay High Court has asked the petitioners to file a representation before the Central Board of Indirect Taxes (CBIC) about the claim and directed the Board to address the grievance within a period of twelve weeks. TRAN-1 is used to claim a tax credit under the previous regime. It is filed by the businesses intending to carry forward their tax credit from the pre-GST regime to the current GST regime. In September, the High Court had asked the Central Government to re-open the facility to file GST TRAN-1 to allow the tax payers to rectify the human typo errors.Form TRAN 1 helps businesses get benefit of input tax credit due as on or before June 30, 2017, transferred under the GST regime. 

The petitioners, O/E/N India Ltd had submitted its form TRAN 1 to enable the unutilised Cenvat credit from the pre-GST regime transferred. But there was a typographical error, due to which it was indicated that Cenvat credit available was Rs. 11,10,555 instead of Rs. 1,11,05,550. In an order on October 24, the bench comprising Justice Riyaz I. Chagla And M.S. Sanklecha had pointed out that “the human errors such as one which is arising in the present Petition are likely to have taken place in other cases also. At times these mistakes in keying in the correct figures would work in favour of the State and at other times in favour of Assessee. According to learned Counsel for both sides, there is no provision in the Act, which allows correction/rectification of such errors.” 

Earlier, the department filed an affidavit before the Court stating that “Further, in view of the directions dated 26092018 of this Court, it has been decided by the CBIC (Central Board of Indirect Taxes & Customs) that relief may be extended to the petitioner after due verification of the bona fides of the claims made by the petitioner from GSTN. Once the claims made by the petitioner have been verified, he may be allowed to amend the TRAN1 to file correct amount of CENVAT credit to be transitioned.”

With this response, nothing survives in this Petition, the bench said. Before concluding, the bench said that “However, Petitioners would have to file representation to the Central Board of Indirect Taxes and Customs (CBIC). This representation would be considered by the CBIC for verification and the bona fides of the claim made by the Petitioners. If satisfied, Petitioners would be allowed to amend the Trans-1 form to reflect the correct amount of credit available. The CBIC will decide the Petitioners’ representation as expeditiously as possible and preferably within a period of twelve weeks from the date the representation, is received by the CBIC.”

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