Facts of the Case

The petitioner, M/s Nippon Engineering Corporation, Faridabad, filed the present writ petition before the Punjab & Haryana High Court seeking relief regarding the filing of TRAN-1/TRAN-2 forms for claiming Transitional Input Tax Credit (ITC) under the GST regime.

During the hearing, the respondents brought to the notice of the Court the order passed by the Hon'ble Supreme Court in Union of India & Another vs Filco Trade Centre Pvt. Ltd. & Another (SLP (C) Nos. 32709-32710 of 2018 dated 22.07.2022), whereby the Supreme Court directed the reopening of the GST portal for all eligible taxpayers to file or revise TRAN-1 and TRAN-2 forms.

The respondents assured the Court that the directions of the Supreme Court would be complied with. In view of the said development, the petitioner chose not to press the writ petition.

Issues Involved

  1. Whether the petitioner was entitled to relief for filing or revising TRAN-1/TRAN-2 forms for claiming Transitional Input Tax Credit?
  2. Whether the Supreme Court's directions in Union of India vs Filco Trade Centre Pvt. Ltd. resolved the grievance raised in the writ petition?
  3. Whether further adjudication by the High Court was required after reopening of the GST portal?

Petitioner's Arguments

  • The petitioner sought an opportunity to file or revise TRAN-1/TRAN-2 forms to claim eligible Transitional Input Tax Credit.
  • The petitioner submitted that denial of such opportunity adversely affected its legitimate GST credit.
  • After being informed of the Supreme Court's directions reopening the GST portal, the petitioner did not press the writ petition as the grievance stood substantially addressed.

Respondents' Arguments

  • The respondents relied upon the judgment of the Hon'ble Supreme Court in Union of India & Another vs Filco Trade Centre Pvt. Ltd. & Another.
  • It was submitted that:
    • GSTN would reopen the common portal.
    • Eligible taxpayers could file or revise TRAN-1/TRAN-2 forms.
    • Technical glitches would be addressed.
    • Authorities would verify claims and pass orders on merits.
  • The respondents assured complete compliance with the Supreme Court's directions.

Court Order / Findings

The Punjab & Haryana High Court observed that the controversy involved in the writ petition had already been addressed by the directions issued by the Hon'ble Supreme Court in Union of India & Another vs Filco Trade Centre Pvt. Ltd. & Another.

Since the respondents undertook to comply with the Supreme Court's order and the petitioner no longer wished to pursue the petition, the Court disposed of the writ petition as not pressed.

The Court also ordered that all pending applications stood disposed of.

Important Clarification

The judgment reiterates that:

  • GSTN was directed by the Supreme Court to reopen the common portal for filing or revising TRAN-1 and TRAN-2.
  • All eligible taxpayers could avail the benefit irrespective of whether:
    • they had filed a writ petition,
    • their case had been decided by the IT Grievance Redressal Committee (ITGRC), or
    • they had earlier faced technical glitches.
  • Verification of Transitional Credit claims was to be undertaken by the proper officers after granting reasonable opportunity of hearing.
  • This High Court order merely records compliance with the binding directions of the Supreme Court and disposes of the petition accordingly.

Sections Involved

  • Section 140 of the Central Goods and Services Tax Act, 2017 (CGST Act)
  • Rule 117 of the CGST Rules, 2017
  • Transitional Input Tax Credit (TRAN-1 & TRAN-2)
  • Article 226 of the Constitution of India

Link to download the order - https://www.mytaxexpert.co.in/uploads/1783921730_2120compressed.pdf

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