Facts of the Case

The petitioner, Bharat Diesel and Automotives, filed a writ petition before the Rajasthan High Court seeking relief concerning the filing of GST TRAN-1 and TRAN-2 forms for claiming Transitional Input Tax Credit (ITC). During the pendency of the petition, the Hon'ble Supreme Court issued comprehensive directions reopening the GST common portal for all eligible registered taxpayers to file or revise TRAN-1 and TRAN-2 forms. The Rajasthan High Court considered these subsequent developments while deciding the writ petition.

Issues Involved

  1. Whether the petitioner was entitled to relief for filing or revising GST TRAN-1 and TRAN-2 forms to claim Transitional Input Tax Credit.
  2. Whether the writ petition survived after the Hon'ble Supreme Court reopened the GST portal for all eligible taxpayers.
  3. Whether the petitioner could avail the benefit of the Supreme Court's directions regarding Transitional Credit.

Petitioner's Arguments

  • The petitioner sought permission to file or revise TRAN-1 and TRAN-2 forms for availing Transitional Input Tax Credit.
  • It was submitted that the petitioner was unable to effectively claim Transitional Credit under the GST regime and therefore approached the High Court seeking appropriate relief.

Respondents' Arguments

  • The respondents relied upon the judgment of the Hon'ble Supreme Court dated 29.08.2022 passed in Special Leave to Appeal (C) Nos. 32709-32710/2018, wherein nationwide directions were issued to reopen the GST portal.
  • It was contended that since the Supreme Court had already granted an opportunity to all eligible registered taxpayers to file or revise TRAN-1 and TRAN-2 forms, the grievance raised in the writ petition no longer survived.

Court Order / Findings

The Rajasthan High Court observed that the issues involved in the writ petition had already been resolved by the Hon'ble Supreme Court through its judgment directing:

  • GSTN to reopen the common portal for filing or revising TRAN-1 and TRAN-2 from 01.09.2022 to 31.10.2022.
  • All aggrieved registered taxpayers, irrespective of whether they had filed writ petitions or approached the IT Grievance Redressal Committee (ITGRC), were permitted to file or revise the relevant forms.
  • GSTN was directed to ensure that no technical glitches occurred during the filing period.
  • Tax authorities were directed to verify the Transitional Credit claims within 90 days after filing and pass appropriate orders after granting reasonable opportunity of hearing.
  • Allowed Transitional Credit was to be reflected in the Electronic Credit Ledger.
  • GST Council was permitted to issue suitable guidelines for scrutiny of Transitional Credit claims.

Since the petitioner had already been granted the benefit of filing TRAN-1 and TRAN-2 pursuant to the Supreme Court's directions, the grievance stood redressed.

Accordingly, the Rajasthan High Court disposed of the writ petition.

Important Clarification

  • This judgment does not independently adjudicate the merits of the petitioner's Transitional Credit claim.
  • The High Court merely recorded that the Supreme Court's nationwide directions adequately addressed the petitioner's grievance.
  • Eligible taxpayers were permitted to file or revise TRAN-1 and TRAN-2 irrespective of whether they had filed writ petitions.
  • Verification of Transitional Credit claims remained subject to scrutiny by the jurisdictional GST authorities.

Sections Involved

  • Section 140 of the Central Goods and Services Tax Act, 2017 – Transitional Arrangements for Input Tax Credit
  • Rule 117 of the CGST Rules, 2017
  • GST TRAN-1
  • GST TRAN-2
  • Transitional Input Tax Credit (ITC)
  • Electronic Credit Ledger
  • Supreme Court Directions in SLP (C) Nos. 32709-32710/2018

Link to Download the Order

 https://www.mytaxexpert.co.in/uploads/1785569847_2544compressed.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.