Facts of the Case

The petitioner, M/s. Sri Sakthi HP Gas Agencies, approached the Madras High Court seeking a writ of mandamus directing the respondents to either reopen the GST portal to enable electronic filing of TRAN-1 or accept a manually filed TRAN-1 form. The petitioner sought to avail transitional input tax credit that could not be claimed due to difficulties in filing the prescribed form within the stipulated period.

 

Issues Involved

  1. Whether the petitioner should be permitted to file or re-file TRAN-1 for claiming transitional input tax credit.
  2. Whether the GST authorities should reopen the GST portal or accept manual filing of TRAN-1.
  3. Whether the petitioner is entitled to the benefit of the directions issued by the Hon'ble Supreme Court in Union of India vs Filco Trade Centre Pvt. Ltd.

 

Petitioner's Arguments

  • The petitioner submitted that it was unable to file TRAN-1 electronically within the prescribed period.
  • It requested the Court to direct the respondents to reopen the GST portal for filing TRAN-1 electronically or alternatively accept a manually filed TRAN-1.
  • The petitioner relied upon the Supreme Court's decision in Union of India & Another vs Filco Trade Centre Private Limited & Another, as well as the Madras High Court decision in M/s. A-One Tiles and M/s. Arihant Marble vs The Assistant Commercial Tax Officer & Others, which granted similar relief to taxpayers.

 

Respondents' Arguments

  • The respondents submitted that the issue was no longer res integra.
  • They pointed out that the controversy stood covered by the judgment of the Madras High Court in M/s. A-One Tiles and M/s. Arihant Marble, wherein the directions issued by the Hon'ble Supreme Court in Filco Trade Centre Pvt. Ltd. had already been followed.
  • Accordingly, the respondents submitted that the petitioner could avail the benefit extended under the Supreme Court's directions.

 

Court Order / Findings

The Madras High Court observed that the dispute was fully covered by its earlier judgment rendered following the Supreme Court's decision in Union of India vs Filco Trade Centre Pvt. Ltd.

The Court noted that the Supreme Court had directed:

  • GSTN to reopen the common portal for filing or revising TRAN-1 and TRAN-2 from 01.09.2022 to 31.10.2022.
  • Every aggrieved registered assessee to file or revise the relevant forms irrespective of whether a writ petition had been filed or whether the matter had been considered by the IT Grievance Redressal Committee.
  • GSTN to ensure that no technical glitches occur during the filing period.
  • Proper officers to verify the transitional credit claims within 90 days after granting reasonable opportunity of hearing.
  • Eligible transitional credit to be reflected in the Electronic Credit Ledger.
  • GST Council to issue suitable guidelines wherever necessary.

Since the petitioner expressed willingness to avail the benefit of the Supreme Court's directions, the writ petition was disposed of on the same terms without costs.

 

Important Clarification

  • The benefit of re-filing or revising TRAN-1/TRAN-2 is available in accordance with the directions issued by the Hon'ble Supreme Court in Union of India vs Filco Trade Centre Pvt. Ltd.
  • Eligible taxpayers are entitled to claim transitional input tax credit even if they had earlier faced technical difficulties.
  • GST authorities are required to examine such claims on merits after providing reasonable opportunity to the taxpayer.
  • The decision reinforces that procedural technicalities should not defeat legitimate transitional credit claims where relief has been granted by the Supreme Court.

 

Sections Involved

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


Link to Download the Order

Reference Judgment: https://www.mytaxexpert.co.in/uploads/1783313902_1006compressed.pdf

 

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