Facts of the Case

The petitioner, M/s J.M.D. Engineers, Faridabad, approached the Punjab & Haryana High Court seeking relief relating to the filing/revision of GST Transitional Credit Forms (TRAN-1/TRAN-2) for claiming transitional input tax credit under the GST regime. During the hearing, the respondents informed the Court that the Hon'ble Supreme Court had already issued comprehensive directions in Union of India & Another vs Filco Trade Centre Pvt. Ltd. & Another regarding reopening of the GST portal for 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 to claim transitional input tax credit.
  2. Whether the writ petition survived after the Supreme Court issued nationwide directions reopening the GST portal for transitional credit claims.
  3. Whether the petitioner should be permitted to avail the benefit provided under the Supreme Court's order without further adjudication by the High Court.

 Petitioner’s Arguments

  • The petitioner sought appropriate relief to enable filing/revision of TRAN-1 and TRAN-2 forms for claiming eligible transitional input tax credit.
  • Upon being informed of the Supreme Court's directions granting a fresh opportunity to all eligible taxpayers, the petitioner chose not to press the writ petition since the grievance stood substantially addressed through the Supreme Court's order.

 Respondent’s Arguments

  • The respondents submitted that the controversy was already governed by 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 pointed out that the Supreme Court had directed GSTN to reopen the common portal for filing or revising TRAN-1 and TRAN-2 forms from 01.09.2022 to 31.10.2022.
  • The respondents further assured the Court that the directions issued by the Supreme Court would be complied with meticulously.

 Court Order / Findings

The Punjab & Haryana High Court observed that the issue raised by the petitioner had already been covered by the directions of the Hon'ble Supreme Court in Filco Trade Centre Pvt. Ltd. Since the respondents undertook to comply with those directions and the petitioner did not wish to pursue the writ petition any further, the Court disposed of the petition as not pressed. All pending applications were also disposed of accordingly.

 Important Clarification

  • The decision does not independently determine the petitioner's entitlement to transitional credit.
  • The High Court relied upon and followed the binding directions of the Hon'ble Supreme Court regarding reopening of the GST portal.
  • Eligible registered persons were granted an opportunity to file or revise TRAN-1 and TRAN-2 during the prescribed period.
  • GST authorities were required to verify the claims on merits after providing a reasonable opportunity of hearing.
  • Transitional credit found admissible was to be reflected in the Electronic Credit Ledger after verification.
  • The judgment reinforces that where the Supreme Court has issued comprehensive nationwide directions, pending High Court proceedings on the same issue may be disposed of accordingly.

 Section Involved

  • Section 140 of the Central Goods and Services Tax Act, 2017 (Transitional Input Tax Credit)

Link to Download the Order

https://www.mytaxexpert.co.in/uploads/1785318557_2204compressed.pdf

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