Facts of the Case

The petitioner, Tvl. Kodai Automobiles Limited, filed the present writ petition before the Madurai Bench of the Madras High Court seeking a direction to the respondents to reopen the GST Portal and permit the filing/revision of Form GST TRAN-1 electronically so that the petitioner could claim eligible transitional input tax credit under the GST regime.

The petitioner sought a writ of mandamus directing the authorities to enable electronic access to the GST Portal and treat the TRAN-1 filing as valid in accordance with law.

During the hearing, both parties submitted that the issue was no longer res integra and stood covered by the earlier decision of the Madras High Court in M/s. A-One Tiles & M/s. Arihant Marble vs Assistant Commercial Tax Officer & Others, which had followed the judgment of the Hon'ble Supreme Court in Union of India & Another vs Filco Trade Centre Private Limited & Another.

 

Issues Involved

  1. Whether the petitioner should be permitted to file or revise Form GST TRAN-1 electronically for claiming transitional input tax credit.
  2. Whether the benefit granted by the Supreme Court in Union of India vs Filco Trade Centre Pvt. Ltd. extends to the petitioner.
  3. Whether reopening of the GST Portal should be directed for filing/revision of TRAN-1.

 

Petitioner’s Arguments

  • The petitioner submitted that it was entitled to transitional input tax credit under Section 140 of the CGST Act.
  • Due to inability to file/revise Form GST TRAN-1 electronically, the petitioner sought reopening of the GST Portal.
  • It was argued that the controversy had already been settled by the Supreme Court in Union of India vs Filco Trade Centre Pvt. Ltd., wherein all aggrieved registered taxpayers were permitted to file or revise TRAN-1/TRAN-2.
  • The petitioner requested that similar relief be extended in the present case.

 

Respondent’s Arguments

  • The respondents submitted that the issue stood concluded by the earlier judgments of the Madras High Court and the Supreme Court.
  • It was acknowledged that the petitioner could avail the benefit granted under the directions issued by the Supreme Court in Union of India vs Filco Trade Centre Pvt. Ltd.
  • The respondents relied upon the earlier decision in M/s. A-One Tiles & M/s. Arihant Marble, which had implemented the Supreme Court directions.

 

Court Order / Findings

The Madras High Court observed that the controversy was squarely covered by its earlier judgment rendered in M/s. A-One Tiles & M/s. Arihant Marble, which had faithfully followed the Supreme Court decision in Union of India & Another 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 during the specified period.
  • Every aggrieved registered assessee to be allowed to file or revise the 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 reopening period.
  • Jurisdictional officers to verify transitional credit claims within 90 days after granting reasonable opportunity of hearing.
  • Allowed transitional credit to be reflected in the Electronic Credit Ledger.
  • GST Council to issue appropriate guidelines wherever necessary.

Since the petitioner expressed willingness to avail the benefit granted under the Supreme Court judgment, the High Court disposed of the writ petition on the same terms and extended the benefit accordingly.

 

Important Clarification

  • Every aggrieved registered taxpayer is entitled to file or revise Form GST TRAN-1/TRAN-2 in accordance with the directions issued by the Supreme Court in Union of India vs Filco Trade Centre Pvt. Ltd.
  • The benefit is available irrespective of whether the taxpayer had earlier approached the High Court or the IT Grievance Redressal Committee.
  • The jurisdictional authorities are required to verify the claim on merits after granting reasonable opportunity of hearing.
  • Eligible transitional credit shall thereafter be reflected in the Electronic Credit Ledger.

Sections Involved

  • Section 140 of the Central Goods and Services Tax Act, 2017 – Transitional Arrangements for Input Tax Credit.
  • Rule 117 of the Central Goods and Services Tax Rules, 2017 – Time Limit and Procedure for Filing Form GST TRAN-1.
  • Article 226 of the Constitution of India – Writ Jurisdiction of the High Court.


Link to download the order -

https://www.mytaxexpert.co.in/uploads/1784625842_1631compressed.pdf

 

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