Facts of the Case

The petitioner, M/s The Morinda Cooperative Sugar Mills Limited, Rupnagar, approached the Punjab & Haryana High Court seeking relief regarding the filing of statutory forms for claiming Transitional Input Tax Credit (ITC) under the GST regime. During the hearing, the respondents brought to the notice of the Court the subsequent judgment and directions issued by the Hon'ble Supreme Court in Union of India & Another vs Filco Trade Centre Pvt. Ltd. & Another concerning the reopening of the GST portal for filing or revising TRAN-1 and TRAN-2 forms.

 Issues Involved

  1. Whether the writ petition seeking permission to claim Transitional ITC survived after the Supreme Court issued comprehensive directions in Filco Trade Centre Pvt. Ltd.
  2. Whether taxpayers were entitled to file or revise TRAN-1 and TRAN-2 forms pursuant to the Supreme Court's directions.
  3. Whether any further adjudication by the High Court was necessary in light of the Supreme Court's binding order.

 Petitioner’s Arguments

  • The petitioner had approached the High Court for appropriate relief relating to Transitional ITC under GST.
  • After the respondents informed the Court about the Supreme Court's decision reopening the GST portal for all eligible taxpayers, counsel for the petitioner stated that, in view of the relief already granted by the Supreme Court, the writ petition was no longer required to be pressed.

 Respondent’s Arguments

  • The respondents relied upon the Supreme Court's order dated 22.07.2022 in Union of India & Another vs Filco Trade Centre Pvt. Ltd. & Another.
  • It was submitted that:
    • GSTN had been directed to reopen the common portal for filing or revising TRAN-1 and TRAN-2 forms.
    • The reopening would be available to all eligible registered taxpayers irrespective of whether they had approached any High Court or whether their cases had been considered by the IT Grievance Redressal Committee.
    • Appropriate verification of Transitional Credit claims would thereafter be undertaken by the concerned authorities.
  • The respondents further assured the Court that the Supreme Court's directions would be complied with meticulously.

 Court Order / Findings

The Punjab & Haryana High Court observed that the issue raised in the writ petition stood adequately 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 chose not to press the writ petition, the High Court disposed of the petition. All pending applications were also disposed of accordingly.

 Important Clarification

  • The judgment does not independently adjudicate the merits of the Transitional ITC claim.
  • The High Court disposed of the matter solely because the Supreme Court had already provided a complete mechanism for filing or revising TRAN-1 and TRAN-2 forms.
  • The Supreme Court's directions applied to all aggrieved registered taxpayers, irrespective of whether they had filed writ petitions before High Courts.
  • Verification of Transitional Credit claims remained subject to scrutiny by the proper GST authorities on merits after providing an opportunity of hearing.
  • The judgment reinforces that High Courts may dispose of pending Transitional Credit matters where relief is already covered by the Supreme Court's decision in Filco Trade Centre Pvt. Ltd.

 Section Involved

  • Section 140 of the Central Goods and Services Tax Act, 2017
  • Transitional Input Tax Credit Provisions
  • TRAN-1
  • TRAN-2

Link to Download the Order-https://www.mytaxexpert.co.in/uploads/1785319713_2212compressed.pdf

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