GSTAT Hyderabad says Transitional Credit Protected Against Portal-Related Filing Failure

GSTAT Hyderabad set aside the denial of transitional credit to Sain Medicaments, holding that failure to file one ER-1 return due to established technical glitches in the departmental portal could not justify forfeiture of otherwise undisputed credit. The taxpayer had promptly informed the department and pursued helpdesk complaints. The Tribunal also held that the authorities could not impose a fraud-related penalty under Section 122(2)(b) when the show cause notice had proposed penalty under Section 122(2)(a), contrary to Section 75(7).