Facts of the Case

The petitioner, M/s Ajit Singh Om Parkash Pvt. Limited, approached the Punjab & Haryana High Court seeking relief concerning 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 Court's attention the subsequent directions issued by the Hon'ble Supreme Court in Union of India & Another vs Filco Trade Centre Pvt. Ltd. & Another, which addressed the issue of reopening the GST portal for transitional credit claims.

Issues Involved

  • Whether the petitioner was entitled to relief for filing or revising TRAN-1/TRAN-2 forms to avail Transitional Input Tax Credit.
  • Whether the writ petition required adjudication after the Supreme Court issued comprehensive directions applicable to all eligible taxpayers.

Petitioner's Arguments

  • The petitioner sought appropriate relief regarding the filing of TRAN forms for claiming Transitional Input Tax Credit.
  • Upon being informed of the Supreme Court's directions reopening the GST portal for all eligible taxpayers, the petitioner submitted that the writ petition need not be pressed in view of the relief already granted by the Apex Court.

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 the GSTN would comply with the Supreme Court's directions, including reopening the common portal for filing or revising TRAN-1 and TRAN-2 forms and processing eligible claims in accordance with law.

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 Filco Trade Centre Pvt. Ltd. The Supreme Court had directed:

  • GSTN to reopen the common portal from 01.09.2022 to 31.10.2022 for filing or revising TRAN-1 and TRAN-2 forms.
  • All aggrieved registered taxpayers to file or revise their claims irrespective of whether they had approached the High Court or whether their claims had been decided by the IT Grievance Redressal Committee.
  • GSTN to ensure that no technical glitches hinder filing.
  • Proper officers to verify the claims within 90 days after closure of the portal by granting reasonable opportunity of hearing.
  • Eligible Transitional ITC to be reflected in the Electronic Credit Ledger after verification.
  • GST Council to issue appropriate guidelines wherever necessary.

Since the respondents undertook to comply with these directions, the petitioner chose not to press the writ petition, and the High Court disposed of the petition along with all pending applications.

Important Clarification

  • The judgment reiterates that where the Supreme Court has already granted a comprehensive remedy applicable to all eligible taxpayers, individual writ petitions on the same issue may become unnecessary.
  • The decision reinforces the binding effect of the Supreme Court's directions regarding reopening of the GST portal for Transitional ITC claims.
  • The High Court did not independently examine the merits of the petition and disposed of it solely in light of the Supreme Court's order.

Sections Involved

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

Link to Download the Order

https://www.mytaxexpert.co.in/uploads/1785313736_2195compressed.pdf

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