Facts of the Case

The petitioner, M/s Castmaster Mobitec India Pvt. Ltd., approached the Punjab & Haryana High Court seeking relief regarding the filing of GST TRAN-1/TRAN-2 forms for claiming Transitional Input Tax Credit (ITC) under the GST regime.

During the hearing, the respondents informed the High Court that the Hon'ble Supreme Court, in Union of India & Another vs Filco Trade Centre Pvt. Ltd. & Another (SLP (C) Nos. 32709-32710 of 2018) dated 22.07.2022, had already issued comprehensive directions directing GSTN to reopen the common portal for filing or revising TRAN-1 and TRAN-2 forms for all eligible taxpayers.

In view of the Supreme Court's directions, the respondents assured the Court that they would comply with those directions in letter and spirit. Consequently, the petitioner chose not to press the writ petition.

Issues Involved

  1. Whether taxpayers should be permitted to file or revise GST TRAN-1 and TRAN-2 forms for claiming Transitional ITC.
  2. Whether the writ petition required adjudication after the Supreme Court had already directed reopening of the GST portal.
  3. Whether eligible taxpayers could avail the benefit of the Supreme Court's order irrespective of pending litigation.

Petitioner’s Arguments

  • The petitioner sought the benefit of filing the necessary TRAN-1/TRAN-2 forms to claim Transitional Input Tax Credit.
  • The petitioner requested appropriate directions to enable the filing of the forms and safeguard its legitimate GST credit.
  • After learning that the Supreme Court had already granted identical relief through the Filco Trade Centre judgment, the petitioner submitted that the writ petition need not be pursued further. 

Respondent’s Arguments

The respondents submitted that:

  • The Supreme Court had already issued binding directions in Union of India & Another vs Filco Trade Centre Pvt. Ltd. & Another.
  • GSTN would reopen the portal strictly in accordance with the Supreme Court's directions.
  • The respondents assured the High Court that there would be complete compliance with those directions.

Court Order / Findings

The Punjab & Haryana High Court noted the assurance given by the respondents regarding implementation of the Supreme Court's order.

Since the petitioner accepted that the relief sought stood substantially covered by the Supreme Court's decision and did not wish to continue the proceedings, the Court disposed of the writ petition as not pressed.

The Court also disposed of all pending applications.

Important Clarification

The judgment reiterates the importance of the Supreme Court's landmark directions in Union of India & Another vs Filco Trade Centre Pvt. Ltd. & Another, which provided that:

  • GSTN must reopen the common portal for filing TRAN-1 and TRAN-2 from 01.09.2022 to 31.10.2022.
  • Every aggrieved registered taxpayer could either file or revise TRAN forms, irrespective of:
    • Whether a writ petition had been filed,
    • Whether the taxpayer's grievance had already been considered by the IT Grievance Redressal Committee (ITGRC), or
    • Whether technical glitches had earlier prevented filing.
  • GSTN was directed to ensure that there were no technical glitches during the reopening period.
  • Tax authorities were granted 90 days after closure of the portal to verify the claims after providing reasonable opportunity of hearing.
  • Approved Transitional ITC was to be reflected in the taxpayer's Electronic Credit Ledger.
  • The GST Council was permitted to issue appropriate guidelines for scrutiny of such claims. 

Key Takeaway

This decision does not independently adjudicate the merits of Transitional ITC but affirms that taxpayers are entitled to rely upon the Supreme Court's Filco Trade Centre ruling. The Punjab & Haryana High Court disposed of the petition after recording the respondents' assurance that the Supreme Court's directions regarding reopening of the GST portal would be fully implemented. It reinforces the binding nature of the Supreme Court's directions for all eligible taxpayers seeking Transitional Input Tax Credit.

Sections Involved

  • Section 140 of the Central Goods and Services Tax Act, 2017 – Transitional Input Tax Credit
  • Rule 117 of the CGST Rules, 2017 – Filing of Form GST TRAN-1
  • Form GST TRAN-1
  • Form GST TRAN-2

 

Link to Download the Order

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

 

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