Facts of the
Case
The Delhi High Court considered a batch of writ
petitions filed by Sunrise Autoworld Pvt. Ltd., Rehau Polymers Private Limited,
U.C. Infosystems Pvt. Ltd., and Gulati Enterprises.
The petitions concerned the filing and/or revision
of Form GST TRAN-1 electronically through the common GSTN portal. The dispute
arose in the context of transitional credit under the GST regime and the
difficulties relating to filing or revising TRAN-1.
During the hearing, learned counsel appearing for
the respondents stated that the writ petitions did not survive 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 stated before the Delhi
High Court that the common GSTN portal was open as on the date of the order.
In light of the Supreme Court’s order and the
statement made on behalf of the respondents regarding availability of the
common GSTN portal, the Delhi High Court found that the petitioners were at
liberty to electronically file or revise TRAN-1.
Accordingly, the writ petitions were disposed of as satisfied.
Issues
Involved
The principal issues arising in the connected writ
petitions were:
- Whether the petitioners could be permitted to electronically file
or revise Form GST TRAN-1.
- Whether the writ petitions continued to survive after the Supreme
Court’s order in Union of India vs Filco Trade Centre Pvt. Ltd.
- Whether reopening of the common GSTN portal enabled taxpayers to
file or revise TRAN-1 electronically.
- Whether, in view of the Supreme Court’s directions and the
respondents’ statement that the GSTN portal was open, any further
adjudication of the writ petitions was required.
- Whether taxpayers claiming transitional credit could avail the electronic facility for filing or revising TRAN-1 in accordance with the mechanism made available pursuant to the Supreme Court’s order.
Petitioner’s
Arguments
The order is brief and does not separately record
detailed submissions advanced by each petitioner.
However, from the nature of the proceedings and the
relief ultimately recognised by the Court, the petitions concerned the
petitioners’ ability to file and/or revise Form GST TRAN-1 electronically.
The petitioners sought relief in relation to the
TRAN-1 filing/revision mechanism connected with transitional credit under the
GST framework.
The core grievance stood addressed once the Supreme
Court’s order in Union of India vs Filco Trade Centre Pvt. Ltd. became
applicable and the common GSTN portal was made available for the relevant
electronic filing/revision process.
Important Note: No additional detailed petitioner-wise arguments should be attributed to the parties because the Delhi High Court’s order itself does not separately reproduce such submissions.
Respondent’s
Arguments
The learned counsel appearing for the respondents
specifically stated before the Delhi High Court that:
- The 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 common GSTN portal was open as on the date of the Delhi High
Court’s order.
On the basis of these statements, the respondents’ position was that the relief concerning electronic filing or revision of TRAN-1 stood effectively addressed through the mechanism available pursuant to the Supreme Court’s order.
Court Order
/ Findings
The Delhi High Court recorded the respondents’
statement that the writ petitions did not survive in view of the Supreme
Court’s order in Union of India vs Filco Trade Centre Pvt. Ltd.
The Court also recorded the statement that the
common GSTN portal was open as on the date of the order.
The High Court held that, in view of:
- the Supreme Court’s order; and
- the statement made on behalf of the respondents regarding the
opening of the common GSTN portal,
the petitioners were at liberty to
electronically file or revise TRAN-1.
Accordingly, all the connected writ petitions were disposed
of as satisfied.
Important
Clarification
The Delhi High Court did not undertake a fresh
detailed adjudication on the substantive entitlement of each petitioner to
transitional credit.
The order primarily recognised that, because of the
Supreme Court’s directions in Union of India vs Filco Trade Centre Pvt. Ltd.
and the availability of the common GSTN portal, the petitioners could
electronically file or revise TRAN-1.
Therefore, the key legal effect of the order is
procedural: the petitioners were given liberty to use the electronic mechanism
for filing or revising TRAN-1.
The order should not be read as an independent
declaration that every amount of transitional credit claimed by a petitioner
automatically stands accepted or allowed. The Delhi High Court’s express finding
was that the petitioners were at liberty to electronically file/revise TRAN-1,
following which the writ petitions were disposed of as satisfied.
Sections /
Provisions Involved
Section 140
of the Central Goods and Services Tax Act, 2017
Section 140 concerns transitional arrangements for
input tax credit and forms the principal statutory context for migration of
eligible pre-GST credit into the GST regime.
Rule 117 of
the Central Goods and Services Tax Rules, 2017
Rule 117 is relevant to the procedural framework
for submission of the prescribed declaration relating to transitional credit,
including Form GST TRAN-1.
Form GST
TRAN-1
TRAN-1 is the prescribed transitional declaration relevant to eligible taxpayers seeking transition of specified credits from the pre-GST indirect tax regime into the GST framework.
Link to download the order https://www.mytaxexpert.co.in/uploads/1783327025_1226compressed.pdf
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