Facts of the Case

The petitioner filed the present writ petition under Article 226 of the Constitution seeking reopening of the GST common portal to enable filing of Form TRAN-1 for claiming transitional input tax credit amounting to Rs. 59,16,431/- under Section 140(3) of the CGST Act, 2017.

The petitioner contended that due to non-availability of the GST portal, it was unable to file Form TRAN-1 within the prescribed period and sought directions to the respondents either to reopen the portal or permit manual filing of the transitional credit claim. The petitioner relied upon the Supreme Court's order dated 22.07.2022 directing reopening of the GST portal for filing TRAN-1 and TRAN-2 forms.

Issues Involved

  1. Whether the petitioner is entitled to reopening of the GST portal for filing Form TRAN-1 and claiming transitional input tax credit under Section 140(3) of the CGST Act, 2017?
  2. Whether the benefit granted by the Supreme Court permitting filing of TRAN-1 and TRAN-2 forms applies to the petitioner irrespective of the assessment year or earlier litigation?

Petitioner's Arguments

  • The petitioner submitted that it was unable to file Form TRAN-1 due to issues relating to the GST portal.
  • It argued that denial of transitional credit was arbitrary and contrary to the provisions of the CGST Act as well as Articles 14 and 19(1)(g) of the Constitution of India.
  • The petitioner relied upon the Supreme Court's order dated 22.07.2022 in the batch of Special Leave Petitions directing GSTN to reopen the common portal for filing or revising TRAN-1 and TRAN-2.
  • It was further contended that the present case was fully covered by the earlier decision of the Andhra Pradesh High Court in W.P. No. 944 of 2021 dated 25.08.2022.

Respondents' Arguments

The Central Tax authorities and the Commercial Tax authorities opposed the writ petition and resisted the relief sought by the petitioner.

Court Order / Findings

The Andhra Pradesh High Court observed that the Supreme Court, by order dated 22.07.2022, had directed GSTN to reopen the common portal for filing or revising Forms TRAN-1 and TRAN-2 from 01.09.2022 to 31.10.2022.

The Court held that the Supreme Court's directions were applicable to all aggrieved registered assessees and were not confined to any particular assessment year. It further observed that any registered person who had earlier been unable to file or revise TRAN-1 or TRAN-2 due to technical difficulties could avail the benefit during the reopened period.

Following the Supreme Court's directions and its earlier decision, the High Court allowed the writ petition to the limited extent of permitting the petitioner to avail the benefit in accordance with the Supreme Court's order. No order as to costs was passed.

Important Clarification

  • The reopening of the GST portal for filing TRAN-1 and TRAN-2 was applicable to all eligible registered taxpayers.
  • The benefit was available irrespective of whether:
    • the taxpayer had filed a writ petition,
    • the matter had been considered by the IT Grievance Redressal Committee, or
    • the issue related to any particular assessment year.
  • GSTN was directed to ensure that there were no technical glitches during the reopening period.
  • The jurisdictional authorities were required to verify the claim within 90 days and thereafter allow eligible transitional credit to be reflected in the Electronic Credit Ledger.

Sections Involved

  • Section 140(3) of the Central Goods and Services Tax Act, 2017
  • Article 226 of the Constitution of India
  • Article 14 of the Constitution of India
  • Article 19(1)(g) of the Constitution of India
  • Transitional Credit Provisions under the CGST Act
  • TRAN-1
  • TRAN-2

Link to Download the Order-https://mytaxexpert.co.in/uploads/1784807761_1922compressed.pdf

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