Facts of the Case

The petitioner, M/s Castmaster Mobitec India Pvt. Ltd., Faridabad, approached the Punjab & Haryana High Court seeking relief regarding the filing of TRAN-1/TRAN-2 forms for claiming transitional input tax credit under the GST regime. During the pendency of the writ petition, 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 the GST portal was directed to be reopened for all eligible taxpayers to file or revise TRAN-1 and TRAN-2 forms within the prescribed period. In view of the Supreme Court's directions and the respondents' assurance to comply with them, the petitioner chose not to press the writ petition.

Issues Involved

  1. Whether the petitioner should be granted an opportunity to file or revise TRAN-1/TRAN-2 forms for claiming transitional input tax credit.
  2. Whether the writ petition required adjudication after the Supreme Court issued comprehensive directions reopening the GST portal for all eligible taxpayers.
  3. Whether the petitioner could avail the benefit of the Supreme Court's directions without further adjudication by the High Court.

Petitioner's Arguments

  • The petitioner sought relief for filing or revising TRAN-1/TRAN-2 forms in order to claim the transitional input tax credit available under Section 140 of the CGST Act.
  • Upon being informed that the respondents would comply with the Supreme Court's directions reopening the GST portal for all eligible taxpayers, the petitioner submitted that the writ petition was no longer required to be pursued and did not press the same.

Respondent's Arguments

  • The respondents informed the High Court that the Hon'ble Supreme Court, in Union of India & Another vs Filco Trade Centre Pvt. Ltd. & Another, had already issued binding directions requiring GSTN to reopen the common portal for filing or revising TRAN-1 and TRAN-2 forms.
  • The respondents further assured the Court that there would be meticulous compliance with the directions issued by the Supreme Court.

Court Order / Findings

The Punjab & Haryana High Court observed that the controversy stood substantially covered by the directions issued by the Hon'ble Supreme Court in Union of India & Another vs Filco Trade Centre Pvt. Ltd. & Another.

Considering the respondents' undertaking that the Supreme Court's directions would be duly implemented, and since the petitioner did not wish to pursue the writ petition any further, the Court disposed of the petition as not pressed.

The Court also disposed of all pending applications, if any.

Important Clarification

The judgment reiterates the implementation of the Supreme Court's directions in Filco Trade Centre Pvt. Ltd., which provided that:

  • GSTN shall reopen the common portal for filing or revising TRAN-1 and TRAN-2.
  • All aggrieved registered taxpayers are entitled to file or revise the relevant forms irrespective of whether they had filed writ petitions or whether their claims had earlier been decided by the IT Grievance Redressal Committee.
  • GST authorities shall verify the claims on merits after granting reasonable opportunity of hearing.
  • The admissible transitional credit shall thereafter be reflected in the Electronic Credit Ledger.
  • The GST Council may issue appropriate guidelines for scrutiny of such claims.

Sections Involved

  • Section 140 of the Central Goods and Services Tax Act, 2017
  • Transitional Input Tax Credit (TRAN-1 / TRAN-2)
  • Electronic Credit Ledger provisions under the CGST framewor

Link to Download the Order

https://www.mytaxexpert.co.in/uploads/1785305661_2166compressed.pdf

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