Facts of the Case

The petitioner, M/s Kuldip Enterprises, Faridabad, approached the Punjab & Haryana High Court seeking relief regarding the availment of transitional Input Tax Credit under the GST regime through filing/revision of Forms TRAN-1 and TRAN-2.

During the proceedings, counsel for the respondents brought to the notice of the Court the directions issued by the Hon'ble Supreme Court in Union of India & Another vs Filco Trade Centre Pvt. Ltd. & Another, whereby GSTN was directed to reopen the common portal for filing or revising TRAN-1 and TRAN-2 forms for all eligible registered taxpayers.

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

Issues Involved

  1. Whether the petitioner was entitled to claim transitional Input Tax Credit by filing or revising Forms TRAN-1 and TRAN-2.
  2. Whether relief was required from the High Court after the Supreme Court had already directed reopening of the GST portal for all eligible taxpayers.
  3. Whether the writ petition survived after the issuance of nationwide directions by the Supreme Court regarding transitional credit claims.

Petitioner's Arguments

  • The petitioner sought appropriate relief for claiming transitional Input Tax Credit under the GST laws.
  • After being informed of the Supreme Court's directions permitting eligible taxpayers to file or revise TRAN-1 and TRAN-2 forms, the petitioner submitted that the writ petition need not be pursued further.
  • Accordingly, the petitioner did not press the petition.

Respondents' Arguments

The respondents submitted that:

  • The Hon'ble Supreme Court had already passed comprehensive directions in Filco Trade Centre Pvt. Ltd.
  • GSTN had been directed to reopen the portal from 01.09.2022 to 31.10.2022 for filing or revising Forms TRAN-1 and TRAN-2.
  • Eligible registered persons could avail the benefit irrespective of whether they had filed writ petitions or whether their cases had been decided by the IT Grievance Redressal Committee.
  • The respondents assured the Court of complete compliance with the Supreme Court's directions.

Court Order / Findings

The Punjab & Haryana High Court observed that:

  • The controversy raised in the writ petition stood covered by the directions issued by the Hon'ble Supreme Court in Union of India & Another vs Filco Trade Centre Pvt. Ltd. & Another.
  • Since the respondents undertook to comply with those directions and the petitioner did not wish to pursue the matter further, no further adjudication was necessary.
  • The writ petition was accordingly disposed of as not pressed.
  • All pending applications were also disposed of.

Important Clarification

The decision does not independently determine the petitioner's entitlement to transitional Input Tax Credit.

Instead, the High Court disposed of the matter because the Supreme Court had already granted a uniform remedy by directing:

  • Reopening of the GST portal for filing/revising TRAN-1 and TRAN-2.
  • Filing by all eligible registered taxpayers irrespective of pending litigation.
  • Verification of claims by tax authorities within the prescribed period.
  • Reflection of admissible transitional credit in the Electronic Credit Ledger after verification.

Sections Involved

  • Section 140 of the Central Goods and Services Tax Act, 2017 – Transitional Arrangements for Input Tax Credit
  • Relevant provisions relating to filing/revision of Form GST TRAN-1 and Form GST TRAN-2
  • Directions issued by the Hon'ble Supreme Court in Union of India & Another vs Filco Trade Centre Pvt. Ltd. & Another (SLP (C) No. 32709-32710 of 2018). 

Link to Download the Order

https://www.mytaxexpert.co.in/uploads/1785221175_2122compressed.pdf

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