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Facts of the Case

The Union of India filed an appeal, M.A.T. No. 16 of 2022, before a Division Bench of the Calcutta High Court against a common order dated 04.03.2020 of a learned Single Judge in W.P. No. 24020(W) of 2019, involving Baljit Iron Private Limited and connected respondents, on the question of availing transitional credit through Form TRAN-1 under the CGST regime. The appeal was filed with a delay of 643 days, and an application for condonation of delay was also moved. While the matter was pending, the Supreme Court delivered a comprehensive ruling in Union of India v. FILCO Trade Centre Pvt. Ltd. on 22.07.2022, directing GSTN to reopen the common portal for filing or revising TRAN-1 and TRAN-2 forms for all aggrieved registered assessees for two months.

Issues Involved

  1. Whether the 643-day delay in filing the Revenue's appeal ought to be condoned.
  2. Whether, in light of the Supreme Court's FILCO Trade Centre directions reopening the TRAN-1/TRAN-2 window for all aggrieved assessees, any further adjudication of the Revenue's appeal on the transitional-credit question was necessary.

Petitioner's Arguments

  • Counsel for the Union of India (the appellant) sought condonation of the 643-day delay, citing reasons in the supporting affidavit, and pressed for adjudication of the appeal on the transitional-credit question.
  • It was submitted that the Supreme Court's decision in FILCO Trade Centre, having issued comprehensive directions for reopening of the TRAN-1/TRAN-2 filing window, rendered the appeal amenable to disposal in terms of that ruling.

Respondent's Arguments

  • Counsel for the respondents (Baljit Iron and connected parties) did not seriously contest the delay condonation, and it appears no separate objection was raised to disposal of the appeal in terms of the Supreme Court's FILCO Trade Centre directions.

Court Order / Findings

  • Although not entirely convinced by the reasons for the 643-day delay, the Court exercised discretion to condone it, having regard to the Supreme Court's own reasoned order dated 22.07.2022 in the FILCO Trade Centre matter.
  • Noting the Supreme Court's comprehensive directions — reopening the GSTN common portal for TRAN-1/TRAN-2 filing for two months, permitting any aggrieved registered assessee to file or revise the relevant form irrespective of pending litigation, and prescribing a 90-day verification window for the department — the Court held that no separate orders were required in the Revenue's appeal.
  • The appeal, along with the connected application, was disposed of in terms of the Supreme Court's directions in FILCO Trade Centre, without an independent adjudication on the merits of the transitional-credit dispute.

Important Clarification

  • Where the Supreme Court has issued nationwide directions comprehensively resolving a recurring transitional-credit controversy (as in FILCO Trade Centre), pending High Court appeals on the same TRAN-1/TRAN-2 question are appropriately disposed of by simply applying those directions, without separate adjudication.
  • This effectively benefits assessees in Baljit Iron's position, since the reopened filing window under FILCO Trade Centre applies irrespective of whether their case was still sub judice before the High Court.

Sections Involved

  • Form TRAN-1 and TRAN-2, CGST Rules, 2017 – prescribe the mechanism for carrying forward pre-GST transitional credit.
  • Union of India v. FILCO Trade Centre Pvt. Ltd. (SLP (C) Nos. 32709-32710/2018) – the Supreme Court ruling reopening the TRAN-1/TRAN-2 filing window nationwide.

Decision – In Favour of

The decision is disposed of in terms of the Supreme Court's FILCO Trade Centre directions, which is in substance in favour of the assessee (Baljit Iron), since it preserves the taxpayer's ability to avail transitional credit through the reopened filing window, without the Revenue's appeal being separately adjudicated on merits.

Case Details

Court: High Court at Calcutta
Case No.: M.A.T. No. 16/2022
CNR / Citation: Not available in judgment text
Coram: Hon'ble Mr. Justice T.S. Sivagnanam and Hon'ble Mr. Justice Bivas Pattanayak
Date of Order: 26 July 2022

Link to Download the Order

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