Facts of the Case

M/s Aswin Paper Company filed a writ petition before the Kerala High Court seeking relief regarding the availment of GST Transitional Input Tax Credit (ITC) while migrating from the pre-GST tax regime to the Goods and Services Tax (GST) regime. The dispute arose due to difficulties in filing or revising Form GST TRAN-1/TRAN-2, resulting in the petitioner being unable to avail the eligible transitional credit. During the pendency of the matter, the Supreme Court delivered its landmark judgment in Union of India & Anr. vs Filco Trade Centre Pvt. Ltd. & Anr., addressing the very same issue.

Issues Involved

  1. Whether the petitioner was entitled to claim or revise GST Transitional Credit through TRAN-1/TRAN-2 despite earlier procedural or technical difficulties.
  2. Whether the directions issued by the Supreme Court in Filco Trade Centre Pvt. Ltd. were applicable to the petitioner's case.
  3. Whether GST authorities were required to permit filing/revision of TRAN forms and examine the claim on merits.

Petitioner’s Arguments

  • The petitioner contended that it was unable to avail the eligible transitional credit because of issues faced while migrating to the GST regime.
  • It sought permission to file or revise the necessary TRAN forms so that legitimate transitional credit could be claimed.
  • It relied upon the legal position settled by the Supreme Court in Filco Trade Centre Pvt. Ltd., which granted relief to all similarly placed taxpayers.

Respondent’s Arguments

  • The respondents did not dispute that the controversy involved in the writ petition had already been settled by the Supreme Court.
  • It was accepted that the directions issued by the Supreme Court regarding reopening of the GST portal and filing/revision of TRAN forms governed the present matter as well.

Court Order / Findings

The Kerala High Court observed that the issue raised in the writ petition stood completely covered by the judgment of the Supreme Court in Union of India & Anr. vs Filco Trade Centre Pvt. Ltd. & Anr., 2022 SCC OnLine SC 912.

Accordingly, the Court held that the Supreme Court's directions would apply to the petitioner and disposed of the writ petition on those terms. The significant directions applicable included:

  • GSTN was directed to reopen the common portal for filing or revising TRAN-1 and TRAN-2 during the specified period.
  • Any aggrieved registered taxpayer could file or revise the relevant forms irrespective of whether a writ petition had been filed or whether the matter had been decided by the IT Grievance Redressal Committee (ITGRC).
  • GSTN was required to ensure that no technical glitches occurred during the reopening period.
  • Jurisdictional officers were directed to verify the claim within 90 days after the filing period and pass appropriate orders after providing a reasonable opportunity of hearing.
  • The admissible transitional credit was to be reflected in the taxpayer's Electronic Credit Ledger.
  • The GST Council could issue suitable guidelines for verification of such claims.

Important Clarification

This judgment does not create a new legal principle but applies the binding directions of the Supreme Court in Filco Trade Centre Pvt. Ltd. to the petitioner's case.

The decision confirms that taxpayers facing difficulties in claiming GST Transitional Credit are entitled to the benefit of the Supreme Court's directions relating to reopening of the GST portal, filing or revising TRAN-1/TRAN-2, verification by GST authorities, and reflection of admissible credit in the Electronic Credit Ledger.

Sections / Provisions Involved

  • Section 140 of the Central Goods and Services Tax Act, 2017 – Transitional Arrangements for Input Tax Credit.
  • Rule 117 of the CGST Rules, 2017 – Filing of Form GST TRAN-1.
  • Form GST TRAN-1 & TRAN-2 – Claim of Transitional Input Tax Credit.
  • Supreme Court Judgment: Union of India & Anr. vs Filco Trade Centre Pvt. Ltd. & Anr., 2022 SCC OnLine SC 912.

Link to Download the Order

https://www.mytaxexpert.co.in/uploads/1784884977_1951compressed.pdf

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