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Facts of the Case

M/s. R.P.M. Pharma sought a direction from the Jharkhand High Court permitting it to file Form GST TRAN-1 to carry forward transitional credit from the pre-GST regime into its electronic credit ledger, after its representation to do so had been rejected by order dated 5th January 2021 of the Deputy Commissioner of State Tax, Ranchi. While the petition was pending, the Supreme Court delivered its ruling in Union of India v. Filco Trade Centre Pvt. Ltd., directing GSTN to reopen the common portal for filing or revising TRAN-1/TRAN-2 forms, and subsequently extended that window by a further four weeks by order dated 2nd September 2022.

Issues Involved

  1. Whether a petitioner whose representation for filing/revising TRAN-1 was rejected prior to the Supreme Court's Filco Trade Centre ruling could nonetheless avail the benefit of the reopened filing window directed by the Supreme Court.
  2. Whether the writ petition, filed before the Filco Trade Centre directions were issued, could be disposed of by simply applying those directions.

Petitioner's Arguments

  • The petitioner's counsel submitted that although the writ petition was filed prior to the Supreme Court's directions in Filco Trade Centre, the petitioner's case fell squarely within the scope of those directions and it should accordingly be permitted to avail the reopened window for filing GST TRAN-1 or a revised TRAN-1 application.
  • Reliance was placed on the Supreme Court's order dated 2nd September 2022 extending the portal-reopening window by a further four weeks.

Respondent's Arguments

  • Counsel for the CGST authorities, the GSTN, and the State of Jharkhand all agreed that the petitioner's case was covered by the Supreme Court's directions in Filco Trade Centre, and did not oppose the relief sought.

Court Order / Findings

  • Having considered the Supreme Court's directions in Filco Trade Centre — reopening the GSTN portal for two months for filing/revising TRAN-1 and TRAN-2, irrespective of whether the taxpayer had filed a writ petition or had its case decided by the ITGRC, with a 90-day verification window thereafter — and the further extension by four weeks, the Court held that the petitioner, who could not earlier submit its TRAN-1 application, may now submit it within the window period as directed by the Supreme Court.
  • The writ petition was disposed of, directing that the petitioner's case shall abide by the Supreme Court's directions in Filco Trade Centre, entitling it to file the TRAN-1 application for transitional credit within the reopened window.

Important Clarification

  • The Supreme Court's Filco Trade Centre directions reopening the TRAN-1/TRAN-2 filing window apply to any aggrieved registered assessee, irrespective of whether their individual case was already the subject of a rejected representation or a pending writ petition filed before those directions were issued.
  • This provides a uniform, nationwide remedy for transitional-credit claimants whose representations were earlier rejected on technical or procedural grounds, without requiring each High Court to separately adjudicate the merits of the original rejection.

Sections Involved

  • Form GST TRAN-1, CGST Rules, 2017 – the prescribed form for carrying forward pre-GST transitional credit into the electronic credit ledger.
  • Union of India v. Filco Trade Centre Pvt. Ltd. (SLP (C) Nos. 32709-32710/2018) – the Supreme Court ruling directing reopening of the GSTN portal for transitional credit forms.

Decision – In Favour of

The decision is in favour of the assessee. The petitioner was permitted to file its GST TRAN-1 application within the window reopened pursuant to the Supreme Court's Filco Trade Centre directions.

Case Details

Court: High Court of Jharkhand at Ranchi
Case No.: W.P.(T) No. 2562/2022
CNR / Citation: Not available in judgment text
Coram: Hon'ble Mr. Justice Aparesh Kumar Singh and Hon'ble Mr. Justice Deepak Roshan
Date of Order: 05 September 2022

Link to Download the Order

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