Facts of the Case

M/s. Capital Enterprisers filed W.P.(C) No. 34629 of 2020 before the High Court of Orissa at Cuttack seeking reliefs in relation to the transitional credit mechanism under GST.

During the hearing, learned counsel for the Petitioner stated that, pursuant to the order dated 22 July 2022 passed by the Supreme Court in SLP(C) Nos. 32709-32710/2018, Union of India v. Filco Trade Centre Pvt. Ltd., the Principal Commissioner GST had issued Circular No. 180/12/2022-GST dated 9 September 2022 prescribing guidelines for filing/revising TRAN-1/TRAN-2.

The Petitioner further stated that it would avail itself of the facility made available pursuant to the above Supreme Court order and the said Circular. Accordingly, the Petitioner did not press the reliefs prayed for in the writ petition at that stage.

Issues Involved

The principal issue arising from the order was whether the Petitioner’s writ petition required further adjudication when:

  1. The Supreme Court had already passed an order dated 22 July 2022 in Union of India v. Filco Trade Centre Pvt. Ltd., facilitating the filing/revision of TRAN-1/TRAN-2; and
  2. Circular No. 180/12/2022-GST dated 9 September 2022 had subsequently prescribed guidelines for filing/revising TRAN-1/TRAN-2; and
  3. The Petitioner expressed its intention to avail itself of the said facility and, therefore, did not press the writ reliefs at that stage.

Petitioner’s Arguments

The Petitioner, through learned counsel, submitted that:

  • The Supreme Court, by its order dated 22 July 2022 in SLP(C) Nos. 32709-32710/2018, Union of India v. Filco Trade Centre Pvt. Ltd., had provided relief concerning the filing/revision of TRAN-1/TRAN-2.
  • Pursuant to the Supreme Court’s order, the Principal Commissioner GST issued Circular No. 180/12/2022-GST dated 9 September 2022 prescribing guidelines for filing/revising TRAN-1/TRAN-2.
  • The Petitioner intended to avail itself of the facility made available under the above framework.
  • In view of the availability of such facility, the Petitioner was not pressing the reliefs prayed for in the writ petition at that stage.

Respondent’s Arguments

The order records “None” for the Opposite Parties and does not set out any substantive arguments or submissions on behalf of the Respondents/Opposite Parties.

Accordingly, no independent respondent-side contention should be attributed beyond what is expressly recorded in the judicial order.

Court Order / Findings

The High Court of Orissa took note of the statement made by learned counsel for the Petitioner that:

  • the Supreme Court had passed the relevant order dated 22 July 2022 in Union of India v. Filco Trade Centre Pvt. Ltd.;
  • Circular No. 180/12/2022-GST dated 9 September 2022 had prescribed guidelines for filing/revising TRAN-1/TRAN-2;
  • the Petitioner would avail itself of the above facility; and
  • the Petitioner was consequently not pressing the reliefs sought in the writ petition at that stage.

Accordingly, the High Court disposed of the writ petition as not pressed.

Important Clarification

The High Court did not adjudicate the underlying transitional credit dispute on merits in this order.

The writ petition was disposed of because the Petitioner stated that it intended to avail itself of the facility arising from the Supreme Court’s order in Union of India v. Filco Trade Centre Pvt. Ltd. and the guidelines prescribed through Circular No. 180/12/2022-GST dated 9 September 2022.

Therefore, the order should not be read as an independent determination by the High Court on the substantive eligibility, quantum, or final admissibility of transitional credit claimed by the Petitioner.

It is also important that the operative disposal was “as not pressed” and not a merits-based allowance or dismissal of the Petitioner’s underlying transitional credit claim.

Sections / Provisions Involved

Primary statutory context:

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

Procedural framework generally associated with the subject matter:

  • Rule 117 of the Central Goods and Services Tax Rules, 2017 — Procedural framework concerning declaration of transitional credit.
  • FORM GST TRAN-1 — Transitional credit declaration.
  • FORM GST TRAN-2 — Transitional credit declaration applicable in specified circumstances.
  • Circular No. 180/12/2022-GST dated 09.09.2022 — Guidelines for filing/revising TRAN-1/TRAN-2 pursuant to the Supreme Court’s directions.

Important accuracy note: The short High Court order expressly refers to TRAN-1/TRAN-2, the Supreme Court order in Filco Trade Centre Pvt. Ltd., and Circular No. 180/12/2022-GST. It does not expressly reproduce or adjudicate the text of Section 140 or Rule 117. These provisions are stated as the relevant statutory and procedural context of the transitional credit matter.

Legal Significance of the Decision

The decision demonstrates the practical effect of the Supreme Court’s directions in the Filco Trade Centre matter on pending writ petitions concerning TRAN-1/TRAN-2 transitional credit issues.

Where a petitioner considered the portal-based filing/revision facility sufficient to pursue its transitional credit claim, continuation of the writ proceedings could become unnecessary at that stage. In the present case, this resulted in disposal of the writ petition as not pressed.

The order is therefore significant for understanding the procedural impact of the Filco Trade Centre directions and Circular No. 180/12/2022-GST on pending GST transitional credit litigation.

Conclusion

In M/s. Capital Enterprisers vs Union of India & Others, the High Court of Orissa disposed of the writ petition as not pressed after the Petitioner stated that it would avail itself of the facility for filing/revising TRAN-1/TRAN-2 made available pursuant to the Supreme Court’s order dated 22 July 2022 in Union of India v. Filco Trade Centre Pvt. Ltd. and the guidelines contained in Circular No. 180/12/2022-GST dated 9 September 2022.

The High Court did not decide the underlying transitional credit dispute on merits.

Link to download the order -

https://www.mytaxexpert.co.in/uploads/1783323227_1218compressed.pdf

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