Facts of the Case

M/s Ethos Limited filed the present writ petition before the Punjab & Haryana High Court seeking relief relating to the filing/revision 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 passed comprehensive directions in Union of India & Another vs Filco Trade Centre Pvt. Ltd. & Another dated 22.07.2022, directing GSTN to reopen the common portal for filing or revising TRAN-1 and TRAN-2 forms for all eligible registered taxpayers.

Since the Supreme Court had already granted the relief sought, the petitioner chose not to press the writ petition.

Issues Involved

  1. Whether registered taxpayers should be allowed to file or revise TRAN-1/TRAN-2 for claiming Transitional Input Tax Credit.
  2. Whether the petition required adjudication after the Supreme Court had already issued nationwide directions in the Filco Trade Centre case.
  3. Whether the petitioner was entitled to avail the benefit of the reopening of the GST portal.

Petitioner's Arguments

  • The petitioner sought permission to claim eligible Transitional Input Tax Credit through TRAN-1/TRAN-2.
  • It was submitted that the petitioner was entitled to avail the benefit of transitional credit under the CGST Act.
  • After the respondents referred to the Supreme Court's directions reopening the GST portal, the petitioner did not press the petition since the required relief had already become available.

Respondent's Arguments

The respondents submitted that:

  • The Hon'ble Supreme Court had already passed binding directions in Union of India & Another vs Filco Trade Centre Pvt. Ltd. & Another.
  • GSTN had been directed to reopen the common portal from 01.09.2022 to 31.10.2022 for filing or revising TRAN-1 and TRAN-2.
  • Eligible taxpayers could file or revise their claims irrespective of whether:
    • a writ petition had been filed,
    • the matter had been decided by the IT Grievance Redressal Committee, or
    • technical difficulties had earlier prevented filing.
  • The respondents assured the Court that the Supreme Court's directions would be complied with.

Court Order / Findings

The Punjab & Haryana High Court observed that:

  • The controversy had already been addressed by the Hon'ble Supreme Court in the Filco Trade Centre judgment.
  • Since the respondents agreed to comply with the Supreme Court's directions and the petitioner did not wish to pursue the petition further, the writ petition was disposed of as not pressed.
  • All pending applications were also disposed of accordingly.

Important Clarification

The Supreme Court directions referred to by the High Court provided that:

  • GSTN should reopen the common portal for filing/revising TRAN-1 and TRAN-2.
  • Every aggrieved registered taxpayer could file or revise the forms.
  • The benefit was available irrespective of whether a writ petition had been filed.
  • GSTN was directed to ensure that no technical glitches occurred.
  • Tax authorities were given 90 days to verify the claims.
  • Eligible transitional credit was to be reflected in the Electronic Credit Ledger after verification.
  • GST Council could 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
  • Rule 117 of the CGST Rules, 2017 (Relevant to filing of TRAN-1/TRAN-2)
  • Directions issued by the Hon'ble Supreme Court in Union of India & Another vs Filco Trade Centre Pvt. Ltd. & Another

Link to Download the Order

https://www.mytaxexpert.co.in/uploads/1785303904_2159compressed.pdf

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