Facts of the Case

The petitioner company filed a writ petition before the Uttarakhand High Court seeking a direction to the GST authorities to permit rectification of its TRAN-1 Form so that it could avail the eligible transitional input tax credit under the GST regime.

During the hearing, both parties submitted that the controversy involved in the present writ petition had already been conclusively settled by the Hon'ble Supreme Court in Union of India & Another vs. FILCO Trade Centre Pvt. Ltd. & Another, by order dated 22.07.2022, wherein comprehensive directions were issued regarding reopening of the GST portal for filing or revising TRAN-1 and TRAN-2 forms.

Issues Involved

  1. Whether the petitioner should be permitted to rectify or revise its TRAN-1 Form for claiming transitional input tax credit.
  2. Whether the relief sought by the petitioner was covered by the directions issued by the Hon'ble Supreme Court in Union of India vs. FILCO Trade Centre Pvt. Ltd..
  3. Whether the writ petition required any independent adjudication after the Supreme Court's decision.

Petitioner’s Arguments

  • The petitioner sought permission to rectify the TRAN-1 Form for availing the eligible transitional input tax credit.
  • It was contended that the relief claimed stood covered by the directions issued by the Hon'ble Supreme Court in Union of India vs. FILCO Trade Centre Pvt. Ltd., which directed reopening of the GST portal for filing or revising TRAN-1 and TRAN-2 forms.

Respondent’s Arguments

  • The respondents submitted that the controversy involved in the present writ petition had already been settled by the Hon'ble Supreme Court.
  • Therefore, the matter deserved to be disposed of in accordance with the binding directions issued in Union of India vs. FILCO Trade Centre Pvt. Ltd. without requiring any separate adjudication.

Court Order / Findings

The Uttarakhand High Court observed that the issue raised by the petitioner had already been settled by the Hon'ble Supreme Court in Union of India & Another vs. FILCO Trade Centre Pvt. Ltd. & Another.

The Court referred to the Supreme Court's directions, which provided that:

  • GSTN shall reopen the common portal for filing or revising TRAN-1 and TRAN-2 forms.
  • Any aggrieved registered person may file or revise the forms irrespective of whether a writ petition had been filed or the matter had been considered by the IT Grievance Redressal Committee.
  • GSTN shall ensure that there are no technical glitches during the reopening period.
  • The jurisdictional officers shall verify the claims within the prescribed period after granting reasonable opportunity of hearing.
  • The admissible transitional credit shall thereafter be reflected in the Electronic Credit Ledger.
  • GST Council may issue suitable guidelines, wherever necessary.

Accordingly, the High Court disposed of the writ petition in terms of the directions issued by the Hon'ble Supreme Court.

 

Important Clarification

  • This judgment does not independently decide the merits of the petitioner's transitional credit claim.
  • The High Court merely applied the binding decision of the Hon'ble Supreme Court in Union of India vs. FILCO Trade Centre Pvt. Ltd.
  • Taxpayers seeking rectification or revision of TRAN-1/TRAN-2 forms are governed by the Supreme Court's directions regarding reopening of the GST portal and verification of transitional credit claims.
  • The entitlement to transitional credit remains subject to verification by the competent GST authorities.

Sections Involved

  • Section 140 of the Central Goods and Services Tax Act, 2017 – Transitional Arrangements for Input Tax Credit.
  • Relevant provisions relating to TRAN-1 and TRAN-2 under the CGST Rules governing transitional input tax credit.

Link to Download the Order

https://www.mytaxexpert.co.in/uploads/1785408888_2428compressed.pdf

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