Facts of the Case

The petitioners approached the High Court in separate writ petitions concerning difficulties in filing or revising Form GST TRAN-1 for availing transitional credit under the GST regime.

In some cases, the petitioners could not file TRAN-1 within the prescribed time because of technical glitches on the GST Portal. In other cases, the petitioners had submitted TRAN-1 within time but subsequently discovered mistakes in the forms and sought permission to file revised TRAN-1. Such permission was denied, leading to the filing of the writ petitions.

During the hearing, learned Senior Counsel for the petitioners placed before the High Court the Supreme Court’s order dated 22 July 2022 passed in Special Leave to Appeal (C) Nos. 32709–32710 of 2018. The petitioners relied upon the Supreme Court’s general directions requiring the common GST Portal to be opened for filing or revising forms relating to transitional credit.

 Issues Involved

The principal issues before the High Court were:

  1. Whether taxpayers who could not file TRAN-1 within the prescribed period because of technical glitches on the GST Portal could be permitted to file the form subsequently.
  2. Whether taxpayers who had filed TRAN-1 within time but committed mistakes could be permitted to revise the already-filed form.
  3. Whether separate directions were still required from the High Court after the Supreme Court had issued general directions applicable to aggrieved registered assessees for filing or revising TRAN-1 and TRAN-2.
  4. Whether the petitioners could avail the common portal window directed by the Supreme Court irrespective of their individual litigation status.

 Petitioners’ Arguments

The petitioners contended that their transitional credit claims should not be defeated merely because TRAN-1 could not be filed within time due to technical glitches in the GST Portal.

The petitioners further submitted that, where TRAN-1 had already been filed within time but contained mistakes, they should be permitted to submit a revised TRAN-1.

Learned Senior Counsel specifically relied upon the Supreme Court’s order dated 22 July 2022 in Special Leave to Appeal (C) Nos. 32709–32710 of 2018. It was argued that the Supreme Court had already directed the competent authority to open the common portal for filing the relevant forms for transitional credit through TRAN-1 and TRAN-2 for a period of two months. Accordingly, the petitioners requested disposal of the writ petitions in terms of the Supreme Court’s directions.

 Respondents’ Position

The GST Council was represented before the High Court, and the State of Uttarakhand was also represented through its law officers. The judgment records that learned counsel for the parties were heard.

However, the order does not record any detailed independent counter-arguments or substantive objections advanced by the respondents against the relief sought. Therefore, no separate respondent contention should be attributed beyond what is expressly recorded in the judgment.

 Court Order / Findings

The High Court took note of the general directions issued by the Supreme Court in Special Leave to Appeal (C) Nos. 32709–32710 of 2018.

The Supreme Court directions, as reproduced in the High Court judgment, provided in substance that:

  • GSTN was directed to open the common portal for filing forms for availing transitional credit through TRAN-1 and TRAN-2 for two months, from 01 September 2022 to 31 October 2022.
  • Any aggrieved registered assessee could file the relevant form or revise an already-filed form, irrespective of whether the taxpayer had filed a writ petition before a High Court.
  • The facility was also available irrespective of whether the taxpayer’s case had been decided by the Information Technology Grievance Redressal Committee (ITGRC).
  • GSTN was required to ensure that no technical glitch occurred during the specified period.
  • Concerned officers were given 90 days thereafter to verify the correctness of the transitional credit claims and pass appropriate orders on merits after granting reasonable opportunity to the concerned parties.
  • Allowed transitional credit was thereafter to be reflected in the Electronic Credit Ledger.
  • The GST Council could issue appropriate guidelines to field formations for scrutiny of claims, if required.

The High Court found that, because the Supreme Court had already issued general directions to the GST authorities and directed opening of the GST Portal for the specified two-month period, no further separate direction was required in favour of the petitioners.

Accordingly, all writ petitions were disposed of in terms of the Supreme Court’s order. The High Court expressly held that it would remain open to the petitioners to submit TRAN-1 or Revised TRAN-1 during the window period provided under the Supreme Court’s order.

 Important Clarification

This judgment is significant because the High Court did not grant an independent or separate extension exclusively to the petitioners. Instead, it disposed of the writ petitions by applying the general directions already issued by the Supreme Court.

The key clarification is that the filing/revision opportunity was not confined only to taxpayers who had pending writ petitions. As reproduced in the judgment, the Supreme Court’s direction extended to any aggrieved registered assessee, irrespective of whether:

  • a writ petition had been filed before a High Court; or
  • the taxpayer’s case had been decided by the ITGRC.

Further, the reopening of the portal did not amount to automatic acceptance of transitional credit. The concerned officers retained authority to verify the veracity of the claim, decide the matter on merits, and provide reasonable opportunity to the concerned parties before passing appropriate orders.

 Sections / Legal Provisions Involved

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

Corresponding provisions of the State GST law – Relevant where transitional credit pertains to the State GST framework.

Form GST TRAN-1 – Form relating to transition of eligible pre-GST credits into the GST regime.

Form GST TRAN-2 – Transitional credit mechanism applicable in specified circumstances.

Electronic Credit Ledger – Allowed transitional credit, after verification, was directed to be reflected in the taxpayer’s Electronic Credit Ledger.

Article 226 of the Constitution of India – Constitutional writ jurisdiction invoked before the High Court.

Note: The uploaded order primarily concerns the procedural issue of filing/revising TRAN-1 and reproduces the Supreme Court’s directions. It does not undertake a detailed section-by-section interpretation of Section 140. This distinction is important for accurate reporting of the judgment.

Link to Download the Order-https://mytaxexpert.co.in/uploads/1783501552_3051.pdf

 Disclaimer

This content is shared strictly for general information and knowledge purposes only. Readers should independently verify the information from reliable sources. It is not intended to provide legal, professional, or advisory guidance. The author and the organisation disclaim all liability arising from the use of this content. The material has been prepared with the assistance of AI tools