Calcutta HC allows the assessee to revise Form Tran-2 either electronically or manually with explanations

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Fact: M/s Optival Health Solutions Private Limited (“the Petitioner”) is a dealer/trader engaged in the business of operating retail pharmacy outlets. The petitioner claims transitional credit in Form TRAN 1 within time and further they had filed Form Tran 2. However, the petitioners had noticed that, there were certain mistakes in Form Tran 2, and they wanted to correct the same. Further, the present scheme does not allow rectification or revision of Form Tran 2, such a lacuna which violates the Article 14 of the Constitution. Further the assessee pleaded that they must be allowed to revise or rectify the Form Tran 2 particularly when Form Tran 1 are allowed to be revised or rectified.

Issue Involved: The issue that has fallen for consideration in the present writ petition is whether the petitioner can rectify/revise Form TRAN 2 subsequent to its uploading?

Petitioner’s Contention of law: The petitioners contend that, there are mistakes in Form GST TRAN 2 requiring revision. The Form GST TRAN 2, at best, is an admission of the person filing the same with regard to the contents of the document. Admission is strong evidence against the person making it. However, neither the GST Act, 2017 nor the GST Rules, 2017 can be read to mean that, the same excludes the right of a person making an admission, to forfeit the opportunity to explain it.

 Held: The Hon’ble High Court of Calcutta vide its W.P. No. 18879 (W) of 2018 dated February 7, 2019 stated that when such a person, is seeking to correct Form GST TRAN 2 on its own, an opportunity should be afforded to such person to correct the same. The authorities may retain the original GST TRAN 2 Form for their assessment purpose and can confront the person seeking to revise the GST TRAN 2 with the Form GST TRAN 2 as originally filed and require explanation from the person filing a revised From GST TRAN 2 as to why such revision was required and whether such revisions are justified or not. Such an enquiry can be held in the assessment proceedings. There is no ground as to why, a person filing Form GST TRAN 2 should not be allowed to revise Form GST TRAN 2 after its initial filing.

Therefore, High Court directed the authority and allowed the petitioner to file a revised Form GST TRAN 2, either electronically or manually, in accordance with law, within four weeks from the date of communication of this order.

Citation: W.P. No. 18879 (W) of 2018

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