Facts of the Case

The appellant, Premium Fuels, filed an intra-court appeal before the Calcutta High Court challenging the order dated 15.11.2021 passed in WPA No. 13601 of 2021, whereby the writ petition had been dismissed with certain observations. The dispute pertained to the availment of transitional Input Tax Credit (ITC) under the GST regime through TRAN-1 and TRAN-2 forms.

During the pendency of the appeal, the Hon'ble Supreme Court delivered its landmark judgment in Union of India & Anr. vs. FILCO Trade Centre Pvt. Ltd. & Anr., issuing comprehensive directions for reopening the GST portal to enable taxpayers to file or revise TRAN forms for claiming transitional credit.

Since the controversy involved in the present appeal stood covered by the Supreme Court's directions, the High Court proceeded to decide the appeal accordingly.

Issues Involved

  1. Whether the appellant was entitled to claim transitional Input Tax Credit by filing or revising TRAN-1/TRAN-2 forms.
  2. Whether any separate relief was required after the Supreme Court's decision in FILCO Trade Centre Pvt. Ltd..
  3. Whether the appeal required independent adjudication despite the comprehensive directions issued by the Supreme Court.

Petitioner’s Arguments

  • The appellant challenged the dismissal of its writ petition concerning transitional ITC.
  • It sought appropriate relief for claiming transitional credit under the GST law.
  • It relied upon the legal developments concerning reopening of the GST portal for filing TRAN forms.

Respondent’s Arguments

  • The Union of India relied upon the directions already issued by the Hon'ble Supreme Court in FILCO Trade Centre Pvt. Ltd.
  • It was submitted that the Supreme Court had already provided a complete mechanism governing filing, revision, verification, and grant of transitional credit.
  • Therefore, no independent relief was required in the present appeal.

Court Order / Findings

The Calcutta High Court observed that identical matters had already been disposed of following the judgment of the Hon'ble Supreme Court in Union of India & Anr. vs. FILCO Trade Centre Pvt. Ltd. & Anr.

The Court noted that the Supreme Court had directed:

  • Reopening of the GST common portal for filing or revising TRAN-1 and TRAN-2.
  • Eligible registered taxpayers could file or revise forms irrespective of whether they had approached the High Court or the IT Grievance Redressal Committee.
  • GSTN must ensure that there are no technical glitches.
  • Jurisdictional officers were directed to verify the claims within 90 days after granting reasonable opportunity of hearing.
  • Approved transitional credit was to be reflected in the Electronic Credit Ledger.
  • GST Council could issue appropriate scrutiny guidelines if required.

In view of these binding directions, the High Court held that no separate orders were required in the appeal and disposed of the matter in terms of the Supreme Court's judgment.

Important Clarification

  • The judgment reiterates that disputes relating to TRAN-1 and TRAN-2 transitional credit are governed by the Supreme Court's decision in FILCO Trade Centre Pvt. Ltd.
  • Eligible taxpayers were permitted to file or revise TRAN forms regardless of earlier litigation or ITGRC proceedings.
  • Verification of claims must be carried out by the proper officer on merits after providing an opportunity of hearing.
  • Once found admissible, the transitional credit must be credited to the Electronic Credit Ledger.
  • The decision reinforces uniform implementation of the Supreme Court's directions across all pending matters.

Sections Involved

  • Section 140 of the Central Goods and Services Tax Act, 2017
  • Transitional Credit Rules relating to FORM GST TRAN-1 and FORM GST TRAN-2
  • Article 226 of the Constitution of India (Writ Jurisdiction)

Link to Download the Order

https://www.mytaxexpert.co.in/uploads/1785402100_2370compressed.pdf

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