Facts of the Case

The petitioner, Azad Coach Pvt. Ltd., filed a writ petition before the Rajasthan High Court seeking the opportunity to submit Form GST TRAN-1 for claiming transitional input tax credit. During the hearing, both parties jointly acknowledged that the issue stood covered by the judgment of the Hon'ble Supreme Court dated 22.07.2022 in Union of India & Anr. vs FILCO Trade Centre Pvt. Ltd. & Anr., wherein directions had been issued to reopen the GST portal for filing or revising TRAN-1 and TRAN-2 forms for eligible taxpayers. The petitioner, however, expressed apprehension that despite the Supreme Court's directions, the facility to file TRAN-1 might not be made available in its case.

Issues Involved

  1. Whether the petitioner was entitled to file Form GST TRAN-1 for claiming transitional input tax credit in accordance with the directions issued by the Hon'ble Supreme Court in the FILCO Trade Centre case.
  2. Whether the authorities were required to provide the petitioner with the facility to submit TRAN-1 and consider the claim in compliance with the Supreme Court's order.
  3. Whether the writ petition required any further adjudication after the Supreme Court had already laid down the governing directions regarding transitional credit claims.

Petitioner's Arguments

  • The petitioner submitted that it was entitled to file Form GST TRAN-1 in view of the directions issued by the Hon'ble Supreme Court in Union of India & Anr. vs FILCO Trade Centre Pvt. Ltd. & Anr.
  • The petitioner expressed concern that despite the Supreme Court's decision, it might not be provided the necessary facility to submit TRAN-1 electronically and therefore sought protection from the High Court.

Respondents' Arguments

  • The learned Additional Solicitor General submitted that the directions issued by the Hon'ble Supreme Court were binding and would be complied with in their true letter and spirit.
  • It was stated that the petitioner's TRAN-1 submission would be considered strictly in accordance with the directions issued by the Supreme Court and that there was no justification for the petitioner's apprehension.

Court Order / Findings

The Rajasthan High Court observed that the petitioner's apprehension regarding non-availability of the TRAN-1 filing facility was unfounded in view of the categorical statement made by the respondents that the Supreme Court's directions would be fully implemented.

The Court disposed of the writ petition in terms of the Supreme Court's judgment in Union of India & Anr. vs FILCO Trade Centre Pvt. Ltd. & Anr., permitting the petitioner to submit Form GST TRAN-1 in accordance with the directions issued by the Apex Court.

The Court further clarified that if the petitioner's grievance was not adequately redressed even after compliance with the Supreme Court's directions, the petitioner would be at liberty to seek revival of the writ petition.

Important Clarification

  • The judgment reiterates that all eligible registered taxpayers covered by the Supreme Court's decision in FILCO Trade Centre Pvt. Ltd. are entitled to avail the benefit of filing or revising TRAN-1/TRAN-2 within the period directed by the Supreme Court.
  • Authorities are required to consider such claims strictly in accordance with the Supreme Court's directions.
  • Mere apprehension regarding denial of the filing facility cannot survive once the authorities undertake to comply with the Supreme Court's order.
  • If the taxpayer's grievance remains unresolved after such consideration, the taxpayer retains the liberty to revive the writ proceedings before the High Court.

Section Involved

  • Section 140 of the Central Goods and Services Tax Act, 2017 – Transitional Arrangements for Input Tax Credit.

Link to Download the Order

https://www.mytaxexpert.co.in/uploads/1785391599_2313compressed.pdf

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