GST Update

 Desk of CA. Praveen Sharma – 834 Series (CAPS) 

DELHI HIGH COURT IN THE CASE OF Airports Authority of India

Petition Filed: Airport Authority of India (AAI) challenged the adjudication order dated 21 August 2023, which rejected ?9.34 crore CENVAT Credit claimed through TRAN-1 for April–June 2017.

AAI’s Claim: Out of total credit of ?17.40 crore, only ?8.06 crore was reflected in the ST-3 return; balance ?9.34 crore couldn’t be added due to portal restrictions after GST rollout.

Department’s View: Credit not shown in ST-3 return is ineligible under Section 140, and AAI failed to provide supporting invoices and proofs despite multiple opportunities.

AAI’s Argument: The lapse was procedural, caused by software/portal glitches and the shortened time (90 to 45 days) for filing revised ST-3 returns under Notification No. 18/2017-ST.

Case Law Cited: AAI relied on Aberdare Technologies (SC, 2025) and Filco Trade Centre (SC, 2022) where the Supreme Court recognised portal glitches and allowed relaxation for genuine transitional credit claims.

Court’s Finding: Rejection was based not only on portal issues but also on non-submission of documents; hence, no jurisdictional error or arbitrariness warranting writ intervention.

Direction: Court permitted AAI to file an appeal under Section 107 of CGST Act by 15 November 2025, allowing submission of additional supporting documents.

Relief: Appeal filed within this time shall not be barred by limitation, and if AAI succeeds, refund of pre-deposit with statutory interest will be granted.

LINK:CA. Praveen Sharma on Linkedin

Regards 
CAPS