Facts of the Case

The petitioner, M/s Pensla Exports India, Jalandhar, filed a writ petition before the Punjab & Haryana High Court seeking relief concerning the filing of TRAN-1/TRAN-2 forms for claiming transitional Input Tax Credit (ITC) under the GST regime. During the hearing, the respondents brought to the notice of the Court the judgment of the Hon'ble Supreme Court in Union of India & Another vs Filco Trade Centre Pvt. Ltd. & Another, whereby comprehensive directions had already been issued for reopening the GST portal to facilitate filing or revision of TRAN-1 and TRAN-2 forms for eligible taxpayers.

Issues Involved

  1. Whether the petitioner was entitled to relief for filing or revising TRAN-1/TRAN-2 forms for claiming transitional credit.
  2. Whether the writ petition required adjudication after the Supreme Court had issued comprehensive directions reopening the GST portal.
  3. Whether the petitioner could avail the benefit of the Supreme Court's directions without pursuing the writ petition further.

Petitioner's Arguments

  • The petitioner sought relief for claiming transitional Input Tax Credit by filing or revising the requisite TRAN forms.
  • After being informed of the Supreme Court's decision in Filco Trade Centre Pvt. Ltd., the petitioner accepted that the grievance stood substantially addressed through the directions issued by the Apex Court.
  • Consequently, the petitioner chose not to press the writ petition further.

Respondents' Arguments

  • The respondents submitted that the Hon'ble Supreme Court had already passed detailed directions in Union of India & Another vs Filco Trade Centre Pvt. Ltd. & Another on 22.07.2022.
  • They assured the Court that the directions issued by the Supreme Court would be complied with meticulously.
  • Accordingly, separate adjudication of the writ petition was no longer necessary.

Court Order / Findings

The Punjab & Haryana High Court observed that the Supreme Court had already directed:

  • GSTN to reopen the common portal for filing or revising TRAN-1 and TRAN-2 from 01.09.2022 to 31.10.2022.
  • All eligible registered taxpayers, irrespective of whether they had filed writ petitions or their matters had been decided by the IT Grievance Redressal Committee (ITGRC), would be entitled to file or revise the forms.
  • GSTN should ensure that no technical glitches occur during the filing period.
  • The jurisdictional authorities would verify the claims within 90 days after the portal closes and pass appropriate orders after granting reasonable opportunity of hearing.
  • Approved transitional credit would thereafter be reflected in the Electronic Credit Ledger.
  • The GST Council could issue appropriate guidelines for scrutiny of such claims.

In view of the respondents' undertaking to comply with the Supreme Court's directions, and since the petitioner did not press the writ petition, the High Court disposed of the petition along with all pending applications.

Important Clarification

  • The judgment does not independently decide the merits of the petitioner's claim for transitional credit.
  • The High Court disposed of the matter solely because the Supreme Court had already granted a comprehensive remedy through the Filco Trade Centre judgment.
  • The benefit of reopening the GST portal was extended to all aggrieved registered taxpayers, irrespective of whether they had approached the High Court.
  • Verification of transitional credit claims remained subject to scrutiny by the jurisdictional GST authorities on merits.

Sections Involved

  • Section 140 of the Central Goods and Services Tax Act, 2017 – Transitional Arrangements for Input Tax Credit.
  • Relevant provisions relating to Form GST TRAN-1 and Form GST TRAN-2 under the CGST Rules.

Important Case Law Referred

  • Union of India & Another vs Filco Trade Centre Pvt. Ltd. & Another (Supreme Court) – Directions for reopening the GST portal for filing/revising TRAN-1 and TRAN-2 forms for claiming transitional Input Tax Credit.

Link to Download the Order https://www.mytaxexpert.co.in/uploads/1785305608_2161compressed.pdf

Disclaimer

This content is shared strictly for general information and knowledge purposes only. Readers should independently verify the information from reliable sources. It is not intended to provide legal, professional, or advisory guidance. The author and the organisation disclaim all liability arising from the use of this content. The material has been prepared with the assistance of AI tools.