The Bombay High Court has advised the Union Government to allow rectification of typographical or human errors in filing Form Tran-1 under the Central Goods and Services Tax Act.
This Form Tran-1 is used to claim a tax credit under the previous regime. Tran-1 should be filed by businesses intending to carry forward their tax credit from the pre-GST regime to the current GST regime.
A division bench of Justice MS Sanklecha and Justice RI Chagla was hearing a writ petition filed by a company called OEN India Ltd. In the petition, directions to Deputy Commissioner, Central Tax (Chakan Division), Pune, to allow OEN to re-submit its Form Tran-1, were sought.
According to the petitioner’s counsel, Dr. Abhinav Chandrachud, OEN had indicated in their Form Tran 1 that Cenvat Credit available was Rs. 11,10,555 instead of Rs.1,11,05,550. This was a typographical error on their part and would have resulted in a loss of over 1 crore to the petitioners as Cenvat Credit was to be carried forward in the current GST regime.
The court noted-
“This the Petitioners have been seeking to correct by approaching the respondent tax department. However, inspite of the Petitioners best efforts, the Respondents have refused to allow the petitioners to carry out the necessary amendment to the TRAN1 already submitted or even accept a fresh TRAN1.”
We note 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.”
Then, the court was informed by both Chandrachud and respondent’s counsel Pradeep Jetly that there was no provision in the CGST Act that allows rectification of errors in Form Tran-1.
However, Section 172 of the said Act provides for removal of difficulties which may arise during the implementation of the Act.
Thus, the court said-
“In the above view, it appears to us that it would be appropriate that the Central Government issues a general and/or special order under Section 172 of the Act addressing the above issue on general or special basis, taking into account the ground realities.”
Jetly sought time on behalf of Union of India and the tax department, which was granted. This matter will now come up for hearing on Wednesday.