Facts of the Case

The petitioner, M/s Khurana Trading Co., Kapurthala, approached the Punjab & Haryana High Court seeking relief concerning the filing of GST Transitional Credit forms and the availment of transitional input tax credit. During the pendency of the writ petition, 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 governing the reopening of the GST common portal for filing or revising TRAN-1 and TRAN-2 forms.

Issues Involved

  • Whether the writ petition required further adjudication after the Supreme Court issued binding directions regarding reopening of the GST portal for filing or revising TRAN-1 and TRAN-2 forms.
  • Whether taxpayers seeking transitional input tax credit could avail relief under the Supreme Court's directions without pursuing separate writ proceedings.
  • Whether the petition deserved disposal in view of the respondents' assurance to comply with the Supreme Court's directions.

 Petitioner's Arguments

  • The petitioner sought appropriate relief regarding the filing of GST Transitional Credit forms for claiming eligible input tax credit.
  • After being informed of the Supreme Court's directions in the Filco Trade Centre matter and the respondents' assurance of compliance, the petitioner chose not to press the writ petition any further.

 Respondent's Arguments

  • The respondents submitted that the controversy had already been addressed by the Hon'ble Supreme Court in Union of India & Another vs Filco Trade Centre Pvt. Ltd. & Another.
  • They assured the High Court that the directions issued by the Supreme Court would be meticulously complied with.
  • The respondents relied upon the Supreme Court's directions requiring reopening of the GST portal for filing or revising TRAN-1 and TRAN-2 forms, verification of claims by the authorities, and consequential reflection of admissible credit in the Electronic Credit Ledger.

 Court Order / Findings

The Punjab & Haryana High Court observed that the respondents had undertaken to comply fully with the directions issued by the Hon'ble Supreme Court in Filco Trade Centre Pvt. Ltd. Since the petitioner also did not wish to pursue the writ petition in light of those directions, the Court disposed of the petition. Pending applications, if any, were also disposed of accordingly.

 Important Clarification

  • The Supreme Court directed GSTN to reopen the common portal for filing or revising TRAN-1 and TRAN-2 forms for the specified period.
  • Eligible registered taxpayers could file fresh forms or revise previously filed forms irrespective of whether they had filed writ petitions or whether their cases had been decided by the IT Grievance Redressal Committee.
  • GSTN was directed to ensure that no technical glitches occurred during the reopening period.
  • The jurisdictional authorities were directed to verify the claims on merits after providing reasonable opportunity of hearing.
  • Admissible transitional credit was to be reflected in the Electronic Credit Ledger after verification.
  • The GST Council was permitted to issue appropriate guidelines for scrutiny of transitional credit claims.

 Sections Involved

  • Goods and Services Tax – Transitional Input Tax Credit
  • TRAN-1 and TRAN-2 Filing Provisions
  • Electronic Credit Ledger
  • Transitional Credit Verification Mechanism
  • GST Common Portal Compliance

 Link to Download the Order

https://www.mytaxexpert.co.in/uploads/1785318564_2205compressed.pdf

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