Facts of the Case

The petitioner, BSB Marketing Private Limited, 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 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, wherein comprehensive directions had already been issued for reopening the GST portal to facilitate eligible taxpayers in filing or revising TRAN-1 and TRAN-2 forms.

Issues Involved

  1. Whether the petitioner was entitled to relief for filing or revising TRAN-1/TRAN-2 forms to claim transitional Input Tax Credit.
  2. Whether the petition required adjudication after the Supreme Court had already issued binding directions in Filco Trade Centre Pvt. Ltd. regarding reopening of the GST portal.
  3. Whether eligible taxpayers, irrespective of pending litigation or previous rejection by the IT Grievance Redressal Committee (ITGRC), could avail the benefit of filing or revising TRAN forms.

Petitioner's Arguments

  • The petitioner sought permission to file or revise the TRAN forms for availing transitional credit.
  • The petitioner claimed entitlement to transitional ITC available under the GST law.
  • After the respondents informed the Court about the Supreme Court's directions providing identical relief, the petitioner submitted that the writ petition need not be pursued further.

Respondents' Arguments

The respondents relied upon the Supreme Court's judgment in Union of India & Another vs Filco Trade Centre Pvt. Ltd. & Another, wherein the Apex Court directed:

  • GSTN to reopen the common portal from 01.09.2022 to 31.10.2022.
  • All aggrieved registered taxpayers to file or revise TRAN-1/TRAN-2 forms irrespective of:
    • Whether they had filed writ petitions before High Courts.
    • Whether their claims had been rejected by the IT Grievance Redressal Committee (ITGRC).
  • GSTN to ensure that no technical glitches occur.
  • Proper officers to verify claims within 90 days after granting reasonable opportunity.
  • Eligible transitional credit to be reflected in the Electronic Credit Ledger after verification.
  • GST Council may issue suitable guidelines for verification of claims.

The respondents also assured the High Court that these directions would be complied with meticulously.

Court Order / Findings

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

Since the respondents undertook to comply with those directions and the petitioner no longer wished to press the petition, the Court disposed of the writ petition without entering into the merits of the case.

All pending applications were also disposed of accordingly.

Important Clarification

This judgment reiterates that:

  • Every eligible registered taxpayer was entitled to file or revise TRAN-1/TRAN-2 during the reopening period directed by the Supreme Court.
  • The benefit was available even if:
    • Earlier writ petitions were pending.
    • The taxpayer had not approached any Court.
    • The ITGRC had earlier rejected the claim.
  • The jurisdictional GST authorities were required to verify the claims on merits after providing reasonable opportunity of hearing.
  • Allowed transitional credit was to be reflected 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.
  • Rule 117 of the Central Goods and Services Tax Rules, 2017 – Filing of TRAN-1.
  • Rule 120A of the Central Goods and Services Tax Rules, 2017 – Revision of Declaration in TRAN-1.
  • 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).

Key Takeaways

  • Supreme Court directions in Filco Trade Centre govern all pending disputes relating to TRAN-1/TRAN-2 filing.
  • GSTN was directed to reopen the common portal for filing and revising transitional credit forms.
  • Relief was extended to all eligible taxpayers irrespective of previous litigation status.
  • Proper officers must verify claims on merits after granting an opportunity of hearing.
  • This judgment follows and implements the Supreme Court's binding directions without requiring independent adjudication.

Link to Download the Order

https://www.mytaxexpert.co.in/uploads/1785305617_2162compressed.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.