Facts of the Case

The petitioners filed three writ petitions before the Telangana High Court seeking a direction to the concerned GST authorities to grant additional time for filing revised GST TRAN-1 and TRAN-2 forms or to permit filing of fresh TRAN-1 and TRAN-2 forms so that they could avail transitional input tax credit under the GST regime.

During the hearing, it was brought to the notice of the Court that the issue involved had already been conclusively decided by the Supreme Court in Union of India vs Filco Trade Centre Pvt. Ltd., wherein comprehensive directions had been issued regarding reopening of the GST portal for filing and revising TRAN-1 and TRAN-2 forms.

Issues Involved

  1. Whether the petitioners were entitled to additional time for filing or revising GST TRAN-1 and TRAN-2 forms for claiming transitional input tax credit.
  2. Whether the relief sought survived after the Supreme Court's decision in Union of India vs Filco Trade Centre Pvt. Ltd.
  3. Whether fresh filing or revision of TRAN-1 and TRAN-2 forms should be governed by the directions issued by the Supreme Court.

Petitioners' Arguments

  • The petitioners sought permission to file revised GST TRAN-1 and TRAN-2 forms or alternatively to file fresh forms.
  • It was contended that they should be granted further time to claim transitional input tax credit available under the GST law.
  • The petitioners requested appropriate directions to protect their legitimate entitlement to transitional credit.

Respondents' Arguments

  • The respondents relied upon the judgment of the Supreme Court in Union of India vs Filco Trade Centre Pvt. Ltd.
  • It was submitted that the Supreme Court had already directed reopening of the GST common portal and prescribed a complete mechanism for filing or revising TRAN-1 and TRAN-2 forms.
  • Therefore, no separate or additional relief was required from the High Court.

Court Order / Findings

The Telangana High Court observed that the controversy raised in the writ petitions stood fully covered by the decision of the Supreme Court in Union of India vs Filco Trade Centre Pvt. Ltd.

The Court noted the Supreme Court's directions, including:

  • GSTN shall reopen the common portal for filing/revising TRAN-1 and TRAN-2 forms.
  • Every aggrieved registered taxpayer shall be permitted to file or revise the forms irrespective of whether any 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 filing period.
  • Proper officers shall verify the 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.

Since both sides agreed that the Supreme Court judgment completely covered the matter, the High Court disposed of all the writ petitions without granting any separate relief and without any order as to costs.

Important Clarification

  • The Telangana High Court did not issue any independent directions regarding filing of TRAN-1 or TRAN-2.
  • Relief was granted entirely in accordance with the Supreme Court judgment in Union of India vs Filco Trade Centre Pvt. Ltd.
  • All eligible registered taxpayers covered by the Supreme Court directions were entitled to avail the benefit irrespective of pendency or disposal of their writ petitions.
  • Verification of transitional credit claims remained subject to examination by the GST authorities on merits.

Sections Involved

  • Section 140 of the Central Goods and Services Tax Act, 2017
  • Transitional Input Tax Credit Provisions
  • GST TRAN-1
  • GST TRAN-2
  • Electronic Credit Ledger Provisions

Link to Download the Order

https://www.mytaxexpert.co.in/uploads/1785146571_2092compressed.pdf

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