Facts of the Case

The petitioner, Aesthetic Living Merchants Pvt. Ltd., 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 pendency of the writ petition, the respondents brought to the notice of the Court the directions issued by the Hon'ble Supreme Court in Union of India & Another vs. Filco Trade Centre Pvt. Ltd. & Another, whereby the GSTN portal was directed to be reopened for filing or revising TRAN-1 and TRAN-2 forms. In view of these directions, the respondents assured compliance, and the petitioner chose not to press the writ petition.

 Issues Involved

  1. Whether the petitioner was entitled to relief for filing or revising TRAN-1/TRAN-2 forms for claiming Transitional Input Tax Credit.
  2. Whether the Supreme Court's directions in Filco Trade Centre Pvt. Ltd. adequately addressed the grievance raised in the writ petition.
  3. Whether the writ petition required adjudication after reopening of the GST portal for Transitional Credit claims.

 Petitioner’s Arguments

  • The petitioner sought relief for claiming Transitional Input Tax Credit by filing or revising TRAN-1/TRAN-2 forms.
  • After the respondents informed the Court about the Supreme Court's directions reopening the GST portal and assured compliance, the petitioner submitted that the grievance stood substantially addressed.
  • Consequently, the petitioner did not press the writ petition.

 Respondent’s Arguments

  • The respondents relied upon the order 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 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 forms.
    • All eligible registered taxpayers could avail the benefit irrespective of whether they had approached the High Court or their cases had been considered by the IT Grievance Redressal Committee.
    • GSTN would ensure that no technical glitches occurred during the reopening period.
    • The concerned authorities would verify Transitional Credit claims within 90 days and pass appropriate orders after granting an opportunity of hearing.
    • The admissible Transitional Credit would thereafter be reflected in the Electronic Credit Ledger.
  • The respondents assured the Court that these directions would be complied with meticulously.

 Court Order / Findings

The Punjab & Haryana High Court observed that the controversy involved 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.

Since the respondents undertook to comply with the Supreme Court's directions and the petitioner did not wish to pursue the matter further, the Court disposed of the writ petition as not pressed. Any pending applications were also disposed of accordingly.

 Important Clarification

  • The judgment reiterates that taxpayers were entitled to the benefit of the Supreme Court's special window for filing or revising TRAN-1 and TRAN-2 forms.
  • The benefit was available even to taxpayers who had not filed writ petitions or whose grievances had earlier been examined by the IT Grievance Redressal Committee.
  • Verification of Transitional Credit claims was required to be carried out on merits after providing an opportunity of hearing.
  • Eligible Transitional Credit, once verified, was to be reflected in the Electronic Credit Ledger.

 Sections Involved

  • Transitional Input Tax Credit Provisions under the Central Goods and Services Tax Act, 2017
  • Relevant Transitional Credit Rules relating to TRAN-1 and TRAN-2
  • Electronic Credit Ledger Provisions under the GST Framework

Link to Download the Order

https://www.mytaxexpert.co.in/uploads/1785319706_2211compressed.pdf

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