Facts of the Case

The petitioner, M/s. R.P.M. Pharma, sought a direction 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 earlier representation seeking such permission was rejected by order dated 5 January 2021 of the Deputy Commissioner of State Tax, Ranchi. While the petition was pending, the Hon'ble Supreme Court in Union of India v. Filco Trade Centre Pvt. Ltd. (SLP(C) Nos.32709-32710/2018) passed directions on 22 July 2022 (later extended by order dated 2 September 2022) reopening the common GST portal for filing/revising TRAN-1 and TRAN-2 for all aggrieved registered assessees, ultimately extending the filing window to 60 days from 2 October 2022, irrespective of whether the assessee had approached the High Court or the ITGRC.

Issues Involved

  1. Whether a petitioner whose TRAN-1 representation was rejected before the Supreme Court's Filco directions were issued could nonetheless avail of the reopened filing window.

Petitioner's Arguments

  • The petitioner submitted that although the writ petition was filed prior to the Filco directions, its case squarely fell within the scope of those directions and it ought to be permitted to file the TRAN-1/revised TRAN-1 within the extended window.

Respondent's Arguments

  • Counsel for the CGST authorities, 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.

Court Order / Findings

  • Having examined the Supreme Court's judgment dated 22 July 2022 and the extension order dated 2 September 2022, the Division Bench noted that the common portal would remain open from 2 October 2022 for 60 days.
  • The Court held that since the petitioner's case fell squarely within the scope of the Filco directions, it was entitled to submit its TRAN-1 application within the extended window, and the writ petition was disposed of on that basis.

Important Clarification

  • Registered assessees whose TRAN-1 claims were earlier rejected, and who had approached the High Court before the Supreme Court's Filco Trade Centre directions were issued, remain entitled to avail of the reopened filing window once their case is shown to be covered by those directions, regardless of the sequence of prior litigation.
  • The Filco directions apply irrespective of whether the taxpayer had filed a writ petition or whether its case had already been decided by the Information Technology Grievance Redressal Committee (ITGRC).

Sections Involved

  • Section 140 of the CGST Act, 2017 - governs migration of transitional input tax credit.
  • Form GST TRAN-1 under the CGST Rules, 2017 - the statutory form for claiming transitional credit.

Decision – In Favour of

The writ petition was disposed of in favour of the Assessee, permitting it to file its TRAN-1 application within the Supreme Court-mandated window.

Case Details

High Court of Jharkhand at Ranchi, W.P.(T) No. 2562 of 2022; Coram: Hon'ble Mr. Justice Aparesh Kumar Singh and Hon'ble Mr. Justice Deepak Roshan; decided on 5 September 2022.

Link to Download the Order

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