Facts of the Case

The petitioner, M/s Ramco Steels Pvt. Ltd., approached the Punjab & Haryana High Court seeking relief regarding the filing of GST TRAN-1/TRAN-2 forms for claiming transitional input tax credit under the GST regime.

During the hearing, counsel for the respondents informed the Court that the Hon'ble Supreme Court, in Union of India & Another vs Filco Trade Centre Pvt. Ltd. & Another, had already issued comprehensive directions permitting all eligible taxpayers to file or revise TRAN-1 and TRAN-2 forms through the GST common portal within the prescribed reopening period.

In view of the Supreme Court's directions and the respondents' assurance of strict compliance, the petitioner chose not to press the writ petition.

Issues Involved

  1. Whether the petitioner should be permitted to file or revise Form GST TRAN-1/TRAN-2 for claiming transitional input tax credit.
  2. Whether the reopening of the GST portal pursuant to the Supreme Court's judgment adequately addressed the petitioner's grievance.
  3. Whether further adjudication by the High Court was necessary after issuance of the Supreme Court's binding directions.

Petitioner's Arguments

  • The petitioner sought permission to avail transitional input tax credit by filing or revising the requisite GST TRAN forms.
  • It was contended that the inability to file or correctly submit the forms resulted in denial of legitimate transitional credit.
  • Appropriate relief was sought from the High Court for restoration of the statutory benefit available under Section 140 of the CGST Act.

Respondent's Arguments

The respondents submitted that the controversy had already been addressed by the Hon'ble Supreme Court in Union of India & Another vs Filco Trade Centre Pvt. Ltd. & Another, wherein directions were issued:

  • to reopen the GST common portal for filing TRAN-1 and TRAN-2;
  • to allow filing as well as revision of forms by all aggrieved registered taxpayers;
  • to ensure that no technical glitches occur during the reopening period;
  • to permit proper officers to verify claims on merits after granting an opportunity of hearing; and
  • to credit the admissible transitional input tax credit into the Electronic Credit Ledger after verification.

The respondents further assured the High Court that these directions would be meticulously complied with.

Court Order / Findings

The Punjab & Haryana High Court observed that the Supreme Court had already granted comprehensive relief concerning the filing and revision of GST TRAN-1 and TRAN-2 forms.

Considering the respondents' statement that the Supreme Court's directions would be fully implemented, counsel for the petitioner stated that the writ petition was no longer required to be pursued.

Accordingly, the High Court:

  • disposed of the writ petition as not pressed;
  • recorded the respondents' assurance regarding compliance with the Supreme Court's directions; and
  • disposed of all pending applications.

Important Clarification

This judgment does not independently decide the merits of the petitioner's entitlement to transitional input tax credit.

The High Court simply disposed of the petition after recording that:

  • the issue already stood covered by the Supreme Court's decision in Union of India & Another vs Filco Trade Centre Pvt. Ltd. & Another;
  • eligible taxpayers could file or revise TRAN-1/TRAN-2 within the reopening period directed by the Supreme Court; and
  • admissibility of transitional credit would thereafter be examined by the jurisdictional authorities on merits.

Thus, the judgment reinforces the binding effect of the Supreme Court's directions regarding transitional credit under Section 140 of the CGST Act.

Sections Involved

  • Section 140 of the Central Goods and Services Tax Act, 2017 (CGST Act) – Transitional Input Tax Credit
  • Rule 117 of the CGST Rules, 2017
  • Filing/Revising Form GST TRAN-1
  • Filing Form GST TRAN-2
  • Transitional Credit under GST

Link to download the order - https://www.mytaxexpert.co.in/uploads/1783922877_2123compressed.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.