Facts of the Case

The petitioner, Mini Marson, challenged the difficulties faced in availing Transitional Input Tax Credit while migrating to the Goods and Services Tax (GST) regime. The grievance related to the inability to file or revise the necessary TRAN-1/TRAN-2 forms for claiming transitional credit due to issues encountered during the transition to GST. During the pendency of the writ petition, the Supreme Court delivered its landmark judgment in Union of India & Anr. v. Filco Trade Centre Pvt. Ltd. & Anr., which addressed the same issue comprehensively.

Issues Involved

  • Whether the petitioner should be permitted to file or revise TRAN-1/TRAN-2 forms for claiming Transitional Input Tax Credit.
  • Whether the relief granted by the Supreme Court in Filco Trade Centre Pvt. Ltd. would extend to the petitioner's case.
  • Whether GST authorities were required to verify and process the transitional credit claim after reopening the GST portal.

Petitioner's Arguments

  • The petitioner contended that Transitional Input Tax Credit could not be availed due to difficulties faced during migration to the GST regime.
  • It was submitted that the petitioner deserved an opportunity to file or revise the prescribed forms and claim the eligible transitional credit in accordance with law.

 Respondent's Arguments

  • The matter was considered in light of the Supreme Court's decision in Union of India & Anr. v. Filco Trade Centre Pvt. Ltd. & Anr.
  • It was acknowledged that the controversy involved in the present writ petition had already been settled by the Supreme Court through comprehensive directions regarding reopening of the GST portal for Transitional Credit claims.

 Court Order / Findings

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

Accordingly, the Court applied the Supreme Court's directions to the petitioner's case, including:

  • GSTN shall reopen the common portal for filing or revising TRAN-1 and TRAN-2 forms for the specified period.
  • Any aggrieved registered taxpayer shall be permitted to 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.
  • GSTN shall ensure that no technical glitches occur during the reopening period.
  • The concerned authorities shall verify the Transitional Credit claims within the prescribed period after granting reasonable opportunity of hearing.
  • Eligible Transitional Credit shall thereafter be reflected in the Electronic Credit Ledger.
  • GST Council may issue appropriate guidelines for scrutiny of such claims, if required.

The writ petition was accordingly disposed of in terms of the Supreme Court's directions.

 Important Clarification

This judgment does not independently decide the merits of the Transitional Credit claim. Instead, the Kerala High Court extended the benefit of the Supreme Court's landmark decision in Filco Trade Centre Pvt. Ltd., ensuring that taxpayers facing genuine difficulties in filing or revising TRAN forms receive an opportunity to claim eligible Transitional Input Tax Credit subject to verification by the tax authorities.

 Sections Involved

  • Central Goods and Services Tax Act, 2017 – Provisions relating to Transitional Input Tax Credit.
  • Transitional provisions governing filing of TRAN-1 and TRAN-2 under the GST regime.

 Link to Download the Order

https://www.mytaxexpert.co.in/uploads/1784962409_1976compressed.pdf

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