Facts of the Case

The Delhi High Court was dealing with a batch of writ petitions concerning the filing or revision of Form GST TRAN-1 electronically. The matters included petitions filed by Sunrise Autoworld Pvt. Ltd., Rehau Polymers Private Limited, U.C. Infosystems Pvt. Ltd. and Gulati Enterprises against the concerned tax authorities and the Union of India.

During the hearing, learned counsel appearing for the respondents stated that the writ petitions no longer survived in view of the order passed by the Supreme Court in Union of India vs Filco Trade Centre Pvt. Ltd., (2022) 140 taxmann.com 535 (SC).

The respondents further informed the Court that the common GSTN Portal was open as on the date of the order.

Issues Involved

The principal issue before the Court was whether the petitioners could file or revise Form GST TRAN-1 electronically for claiming or regularising transitional credit after the intervention of the Supreme Court in Union of India vs Filco Trade Centre Pvt. Ltd.

The connected question was whether the pending writ petitions required any further adjudication when the common GSTN Portal had been opened and the petitioners had become entitled to electronically file or revise TRAN-1.

Petitioner’s Arguments

The petitioners had approached the High Court through separate writ petitions in relation to their inability or requirement to file or revise Form GST TRAN-1 electronically.

The substantive grievance underlying the petitions concerned access to the electronic mechanism for filing or revising TRAN-1 so that transitional credit claims could be placed before the GST authorities through the common portal.

The final order does not record detailed independent submissions of each petitioner. Therefore, no additional argument beyond what is reflected in the order should be attributed to the petitioners.

Respondent’s Arguments

The learned counsel appearing for the respondents submitted that the pending writ petitions did not survive in view of the Supreme Court’s order in Union of India vs Filco Trade Centre Pvt. Ltd., (2022) 140 taxmann.com 535 (SC).

The respondents further stated before the Delhi High Court that the common GSTN Portal was open as on 02 November 2022.

On the basis of the Supreme Court order and the availability of the common GSTN Portal, the respondents’ position was that the petitioners could avail the electronic facility for filing or revising TRAN-1.

Court Order / Findings

The Delhi High Court took note of:

  1. The Supreme Court’s order in Union of India vs Filco Trade Centre Pvt. Ltd., (2022) 140 taxmann.com 535 (SC); and
  2. The statement made on behalf of the respondents that the common GSTN Portal was open.

In view of these circumstances, the High Court held that it was apparent that the petitioners were at liberty to file or revise TRAN-1 electronically.

Accordingly, the writ petitions were disposed of as satisfied.

Important Clarification

The Delhi High Court did not undertake a fresh adjudication on the substantive entitlement of each petitioner to transitional credit on merits.

The order specifically proceeded on the basis of the Supreme Court’s order in Union of India vs Filco Trade Centre Pvt. Ltd. and the respondents’ statement that the common GSTN Portal was open.

The practical effect of the order was that the petitioners were at liberty to electronically file or revise TRAN-1. The petitions were therefore disposed of as satisfied.

It is important to distinguish between:

  • permission or liberty to file/revise TRAN-1 electronically; and
  • final determination of the admissibility of transitional credit on merits.

The present order expressly records the former and does not contain a detailed merits-based determination of each individual transitional credit claim.

Sections / Provisions Involved

Section 140 of the Central Goods and Services Tax Act, 2017 – Transitional arrangements for input tax credit.

Rule 117 of the Central Goods and Services Tax Rules, 2017 – Procedural framework historically associated with submission of declaration in Form GST TRAN-1 for transitional credit.

Form GST TRAN-1 – Electronic declaration concerning transitional credit carried forward into the GST regime.

Legal Significance of the Order

The order is significant for TRAN-1 transitional credit disputes because it confirms that, following the Supreme Court’s intervention in Union of India vs Filco Trade Centre Pvt. Ltd., pending writ petitions seeking electronic filing or revision of TRAN-1 could be treated as satisfied where the common GSTN Portal was available for the prescribed exercise.

The decision also demonstrates that the procedural opportunity to file or revise TRAN-1 electronically may resolve the immediate grievance raised in writ proceedings without requiring the High Court to independently adjudicate the substantive transitional credit entitlement of every petitioner.

Conclusion

The Delhi High Court disposed of the batch of writ petitions as satisfied after recording that, in view of the Supreme Court’s order in Union of India vs Filco Trade Centre Pvt. Ltd. and the respondents’ statement that the common GSTN Portal was open, the petitioners were at liberty to file or revise TRAN-1 electronically.

The ruling is therefore an important procedural decision concerning GST transitional credit and electronic filing or revision of Form GST TRAN-1.

Link to download the order

https://www.mytaxexpert.co.in/uploads/1783322740_1215compressed.pdf

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