Facts of the Case

The petitioner, M/s Mohan Clothing Co. Pvt. Ltd., Gurugram, 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, whereby comprehensive directions had already been issued for reopening the GST common portal for filing or revising TRAN-1 and TRAN-2 forms.

In view of the Supreme Court's directions, the respondents assured the High Court that the same would be implemented in letter and spirit. Consequently, the petitioner chose not to press the writ petition

Issues Involved

  • Whether the petitioner was entitled to relief for filing or revising TRAN-1/TRAN-2 to claim Transitional Input Tax Credit.
  • Whether the Supreme Court's directions in Filco Trade Centre Pvt. Ltd. adequately addressed the grievance raised by the petitioner.
  • Whether any further adjudication by the High Court was necessary after the issuance of the Supreme Court's directions.

Petitioner's Arguments

  • The petitioner sought the benefit of Transitional Input Tax Credit by filing or revising the prescribed TRAN forms.
  • After the respondents informed the Court about the Supreme Court's order reopening the GST portal and permitting all eligible taxpayers to file or revise TRAN-1/TRAN-2, the petitioner accepted that the grievance stood substantially addressed.
  • Accordingly, the petitioner did not press the writ petition any further.

Respondent's Arguments

  • The respondents relied upon the judgment of the Hon'ble Supreme Court in Union of India & Another vs Filco Trade Centre Pvt. Ltd. & Another dated 22.07.2022.
  • It was submitted that:
    • GSTN would reopen the common portal from 01.09.2022 to 31.10.2022.
    • Every aggrieved registered taxpayer would be permitted to file or revise TRAN-1/TRAN-2 irrespective of whether a writ petition had been filed or the matter had been considered by the IT Grievance Redressal Committee.
    • GSTN would ensure there were no technical glitches.
    • Tax authorities would verify the claims within 90 days and thereafter reflect the admissible Transitional Credit in the Electronic Credit Ledger.
  • The respondents further assured the Court that these directions would be meticulously complied with.

Court Order / Findings

The Punjab & Haryana High Court observed that the controversy had already been addressed by the Hon'ble Supreme Court through its decision in Union of India & Another vs Filco Trade Centre Pvt. Ltd. & Another.

Since the respondents undertook to comply with the Supreme Court's directions and the petitioner chose not to pursue the matter further, the High Court disposed of the writ petition without entering into the merits of the claim.

All pending applications were also disposed of accordingly.

Important Clarification

  • The judgment does not independently decide the petitioner's entitlement to Transitional Input Tax Credit.
  • The High Court merely disposed of the writ petition because the issue had already been resolved through the Supreme Court's directions in Filco Trade Centre Pvt. Ltd.
  • The decision reaffirmed that eligible taxpayers could avail the benefit of the reopened GST portal in accordance with the Supreme Court's directions.
  • Verification of Transitional Credit claims remained subject to scrutiny by the jurisdictional GST authorities.

Sections Involved

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

Link to Download the Order

https://www.mytaxexpert.co.in/uploads/1785305672_2167compressed.pdf

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