Facts of the Case

The petitioner, M/s Ecocat India Pvt. Ltd., Faridabad, approached the Punjab & Haryana High Court seeking relief regarding the filing of GST Transitional Credit Forms (TRAN-1/TRAN-2) for availing transitional Input Tax Credit (ITC).

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 to enable eligible taxpayers to claim transitional credit.

Since the controversy involved in the present petition stood substantially covered by the directions issued by the Hon'ble Supreme Court, the respondents assured the Court that the said directions would be duly complied with.

Issues Involved

  1. Whether the petitioner should be permitted to file or revise TRAN-1/TRAN-2 forms for claiming transitional Input Tax Credit.
  2. Whether the petition required adjudication after the Supreme Court had already issued binding directions reopening the GST portal for all eligible taxpayers.
  3. Whether the petitioner could obtain relief through the mechanism provided by the Supreme Court without further proceedings before the High Court.

Petitioner's Arguments

  • The petitioner sought relief for claiming transitional Input Tax Credit by filing or revising the requisite TRAN forms.
  • After the respondents informed the Court about the Supreme Court's decision in Filco Trade Centre, and assured compliance with those directions, the petitioner stated that it did not wish to press the writ petition further.

Respondent's Arguments

The respondents submitted that:

  • The Hon'ble Supreme Court had already passed detailed 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.
  • The benefit would be available to all aggrieved registered taxpayers irrespective of whether they had filed writ petitions or approached the IT Grievance Redressal Committee.
  • Appropriate verification of transitional credit claims would thereafter be carried out by the concerned authorities.
  • The respondents assured complete compliance with the Supreme Court's directions.

Court Order / Findings

The Punjab & Haryana High Court observed that the issue raised in the writ petition stood 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 assurance given by the respondents regarding compliance with those directions, counsel for the petitioner chose not to press the writ petition.

Accordingly, the High Court disposed of the writ petition along with all pending applications, leaving the petitioner to avail the remedy provided under the Supreme Court's directions relating to reopening of the GST portal for transitional credit claims.

Important Clarification

  • The decision does not independently adjudicate the petitioner's entitlement to transitional credit.
  • The High Court relied upon and implemented the binding directions of the Supreme Court in Filco Trade Centre.
  • Eligible registered taxpayers were permitted to file or revise TRAN-1 and TRAN-2 forms during the special window opened by GSTN.
  • The concerned GST authorities were required to verify the claims on merits before allowing transitional credit.
  • The permitted transitional credit, once approved, was to be reflected in the taxpayer's Electronic Credit Ledger.
  • The judgment reinforces that High Courts may dispose of similar petitions where the relief already stands covered by binding Supreme Court directions.

Sections Involved

  • Section 140 of the Central Goods and Services Tax Act, 2017 (Transitional Input Tax Credit)
  • Relevant Transitional Credit Provisions relating to TRAN-1 and TRAN-2 under the GST regime.

Link to Download the Order

https://www.mytaxexpert.co.in/uploads/1785313653_2193compressed.pdf

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