Facts of the Case

  • The petitioner, Fridge House Retail Private Limited, approached the Kerala High Court seeking relief regarding the claim of Transitional Input Tax Credit while migrating to the GST regime.
  • The petitioner had experienced difficulties in filing/revising GST TRAN-1 for carrying forward eligible credit into GST.
  • During the pendency of the writ petition, the Supreme Court delivered its landmark judgment in Union of India & Anr. vs Filco Trade Centre Pvt. Ltd. & Anr., 2022 SCC OnLine SC 912, providing comprehensive directions for reopening the GST portal to enable taxpayers to file or revise TRAN-1 and TRAN-2 forms.
  • Since the issue involved in the present writ petition was identical to the issue decided by the Supreme Court, the Kerala High Court considered the applicability of the Supreme Court's directions.

Issues Involved

  1. Whether the petitioner is entitled to claim Transitional Input Tax Credit by filing or revising GST TRAN-1/TRAN-2.
  2. Whether the benefit granted by the Supreme Court in Filco Trade Centre Pvt. Ltd. extends to the petitioner.
  3. Whether the GST authorities are required to verify and process such transitional credit claims in accordance with the Supreme Court's directions.

Petitioner's Arguments

  • The petitioner submitted that it was unable to effectively avail Transitional Input Tax Credit while migrating into the GST regime.
  • It sought permission to file or revise GST TRAN-1 in order to claim eligible transitional credit.
  • The petitioner contended that the benefit of the Supreme Court's judgment in Filco Trade Centre Pvt. Ltd. should also be made available in its case.

Respondents' Arguments

  • The respondents acknowledged that the controversy raised in the writ petition had already been settled by the Supreme Court in Union of India & Anr. vs Filco Trade Centre Pvt. Ltd. & Anr.
  • Therefore, the matter could be disposed of in accordance with the directions issued by the Supreme Court.

Court Order / Findings

The Kerala High Court observed that the controversy in the present writ petition stood completely covered by the judgment of the Supreme Court in Union of India & Anr. vs Filco Trade Centre Pvt. Ltd. & Anr., 2022 SCC OnLine SC 912.

Accordingly, the Court held that the Supreme Court's directions would equally apply to the petitioner.

The Court disposed of the writ petition by directing that the petitioner shall receive the benefit of the Supreme Court's directions, including:

  • GSTN shall reopen the common portal for filing or revising TRAN-1 and TRAN-2.
  • Every eligible registered taxpayer shall be permitted to file or revise the relevant forms irrespective of whether a writ petition had been filed or whether 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 transitional credit claim within the prescribed period after providing a reasonable opportunity of hearing.
  • Eligible transitional credit shall thereafter be reflected in the Electronic Credit Ledger.
  • GST Council may issue appropriate guidelines for verification of such claims.

The writ petition was accordingly disposed of in terms of the Supreme Court's judgment.

Important Clarification

This judgment does not independently decide the issue relating to Transitional Input Tax Credit. Instead, the Kerala High Court expressly followed and implemented the binding directions issued by the Supreme Court in Union of India & Anr. vs Filco Trade Centre Pvt. Ltd. & Anr.

The decision confirms that taxpayers whose cases were pending before the High Court are equally entitled to the benefit of the Supreme Court's directions regarding reopening of the GST portal for TRAN-1 and TRAN-2 filings.

Sections Involved

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

Link to Download the Order

https://www.mytaxexpert.co.in/uploads/1785566943_2524compressed.pdf  

Disclaimer

This content is shared strictly for general information and knowledge purposes only. Readers should independently verify the information from reliable sources. It is not intended to provide legal, professional, or advisory guidance. The author and the organisation disclaim all liability arising from the use of this content. The material has been prepared with the assistance of AI tools.