Facts of the Case

The petitioner, M/s Nippon Engineering Corporation, Faridabad, had approached the Punjab & Haryana High Court seeking relief regarding the filing of TRAN-1/TRAN-2 forms for claiming Transitional Input Tax Credit (ITC) under the GST regime.

During the hearing, the respondents informed the Court that the Hon'ble Supreme Court had already issued comprehensive directions in Union of India & Another vs Filco Trade Centre Pvt. Ltd. & Another (SLP (C) No. 32709-32710 of 2018) dated 22.07.2022 regarding reopening of the GST common portal for filing or revising TRAN-1 and TRAN-2 forms.

In view of these binding directions, the respondents assured the Court that the Supreme Court's directions would be fully complied with. Consequently, the petitioner chose not to press the writ petition.

Issues Involved

  1. Whether registered taxpayers should be permitted to file or revise TRAN-1 and TRAN-2 forms for claiming Transitional Input Tax Credit.
  2. Whether the writ petition survives after the Supreme Court's decision in Filco Trade Centre Pvt. Ltd.
  3. Whether GST authorities are required to process transitional credit claims in accordance with the Supreme Court's directions.

Petitioner's Arguments

  • The petitioner sought relief for filing or revising TRAN-1/TRAN-2 forms to avail eligible Transitional ITC.
  • After the respondents placed reliance upon the Supreme Court's judgment in Filco Trade Centre Pvt. Ltd., and assured strict compliance, the petitioner did not press the writ petition.

Respondents' Arguments

The respondents submitted that:

  • The Hon'ble Supreme Court had already issued detailed directions governing all pending disputes relating to Transitional Credit.
  • GSTN would reopen the common portal.
  • Eligible taxpayers would be permitted to file or revise TRAN-1 and TRAN-2.
  • Appropriate verification would be conducted by the departmental authorities in accordance with the Supreme Court's directions.

Court Order / Findings

The Punjab & Haryana High Court observed that the controversy had already been addressed by the Hon'ble Supreme Court in Union of India & Another vs Filco Trade Centre Pvt. Ltd. & Another.

Taking note of the respondents' assurance regarding compliance with the Supreme Court's directions, the Court recorded that the petitioner no longer wished to pursue the writ petition.

Accordingly:

  • The writ petition was disposed of as not pressed.
  • Pending applications, if any, were also disposed of.

Important Clarification

The case reinforces the implementation of the Supreme Court's landmark decision in Filco Trade Centre Pvt. Ltd., which directed:

  • GSTN to reopen the common portal for filing or revising TRAN-1 and TRAN-2.
  • All eligible registered taxpayers to avail the benefit irrespective of whether they had approached the High Court or ITGRC.
  • GST authorities to verify the claims on merits after granting reasonable opportunity.
  • Allowed Transitional ITC to be reflected in the Electronic Credit Ledger after verification.

The Punjab & Haryana High Court did not independently adjudicate the merits but disposed of the petition in view of the binding Supreme Court directions.

Sections Involved

  • Section 140 of the Central Goods and Services Tax Act, 2017
  • Rule 117 of the Central Goods and Services Tax Rules, 2017
  • Transitional Input Tax Credit (TRAN-1 & TRAN-2) Provisions 

Link to Download the Order

https://www.mytaxexpert.co.in/uploads/1785218486_2120compressed.pdf

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