Facts of the Case

The petitioner, M/s Kuldip Enterprises, Faridabad, filed a writ petition before the Punjab & Haryana High Court seeking relief relating to the filing/revision of TRAN-1/TRAN-2 forms for claiming Transitional Input Tax Credit (ITC) under the GST regime. During the hearing, the respondents informed the Court that the issue had already been addressed by the Hon'ble Supreme Court in Union of India & Another vs Filco Trade Centre Pvt. Ltd. & Another, wherein comprehensive directions had been issued for reopening the GST common portal for filing or revising TRAN-1 and TRAN-2 forms.

Issues Involved

  • Whether the petitioner was entitled to relief for filing or revising TRAN-1/TRAN-2 to claim Transitional Input Tax Credit.
  • Whether the directions issued by the Hon'ble Supreme Court in Filco Trade Centre Pvt. Ltd. governed the petitioner's grievance.
  • Whether any further adjudication by the High Court was necessary after the Supreme Court's directions.

Petitioner's Arguments

  • The petitioner sought permission to claim Transitional Input Tax Credit by filing or revising TRAN-1/TRAN-2 forms.
  • Upon being informed of the Supreme Court's directions in Filco Trade Centre Pvt. Ltd., the petitioner accepted that the grievance stood adequately addressed.
  • Consequently, the petitioner chose not to press the writ petition further.

Respondent's Arguments

The respondents submitted that:

  • The Hon'ble Supreme Court, in Union of India & Another vs Filco Trade Centre Pvt. Ltd. & Another, had already issued binding directions regarding Transitional Credit.
  • GSTN had been directed to reopen the common portal from 01.09.2022 to 31.10.2022 for filing or revising TRAN-1 and TRAN-2.
  • The respondents assured the Court that the Supreme Court's directions would be meticulously complied with.

Court Order / Findings

The Punjab & Haryana High Court observed that:

  • The controversy involved in the writ petition stood covered by the Supreme Court's judgment in Union of India & Another vs Filco Trade Centre Pvt. Ltd. & Another.
  • Since the respondents had undertaken to comply with the Supreme Court's directions and the petitioner did not wish to press the petition, no further orders were required.
  • The writ petition was accordingly disposed of, along with all pending applications.

Important Clarification

The Supreme Court's directions, relied upon by the High Court, provided that:

  • GSTN shall reopen the common portal for filing/revising TRAN-1 and TRAN-2 from 01.09.2022 to 31.10.2022.
  • All eligible registered taxpayers could file or revise the forms irrespective of whether they had approached the High Court or the IT Grievance Redressal Committee.
  • GSTN must ensure that there are no technical glitches during the reopening period.
  • Tax authorities would verify the claims within 90 days after granting reasonable opportunity to taxpayers.
  • Approved Transitional Credit would thereafter be reflected in the Electronic Credit Ledger.
  • GST Council could issue appropriate guidelines for scrutiny of such claims.

Sections Involved

  • Section 140 of the Central Goods and Services Tax Act, 2017 – Transitional Arrangements for Input Tax Credit.
  • Relevant provisions governing TRAN-1 and TRAN-2 under the CGST Rules.

Link to download the order - https://www.mytaxexpert.co.in/uploads/1783922472_2122compressed.pdf

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