Facts of the Case

The petitioner, M/s R P M Associates, 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. Its representation for this purpose had been rejected by the Deputy Commissioner of State Tax, Ranchi, Special Circle, by order dated 05.01.2021. While the writ petition was pending, the Supreme Court, in Union of India v. Filco Trade Centre Pvt. Ltd., directed the GSTN to open the common portal for filing TRAN-1/TRAN-2 forms for a two-month window (initially 01.09.2022 to 31.10.2022, later extended by a further four weeks by order dated 02.09.2022 on I.A. No.121910 of 2022), permitting any aggrieved registered assessee to file or revise such forms irrespective of whether they had filed a writ petition or approached the ITGRC.

Issues Involved

  1. Whether an assessee whose writ petition for permission to file Form TRAN-1 was filed before the Supreme Court's directions in Filco Trade Centre can nonetheless avail the benefit of the extended filing window granted by that judgment.
  2. What is the procedure and timeline for assessees to avail this one-time transitional credit filing window?

Petitioner's Arguments

  • The petitioner argued that although its writ petition was filed prior to the Supreme Court's directions in Filco Trade Centre, its case squarely fell within the scope of those directions, entitling it to the benefit of the reopened window for filing TRAN-1 or a revised TRAN-1.

Respondent's Arguments

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

Court Order / Findings

  • The Court, noting the consensus of all parties, held that the petitioner — who could not earlier submit its TRAN-1 application — could avail of the extended window as per the Supreme Court's directions, and that the case would abide by those directions in their entirety.
  • The operative directions from Filco Trade Centre were reproduced, including: the GSTN's obligation to open the common portal without technical glitches; a 90-day period thereafter for officers to verify the veracity of claims after granting reasonable opportunity to parties; and reflection of allowed transitional credit in the Electronic Credit Ledger upon verification.
  • The writ petition was accordingly disposed of, directing the petitioner to submit its TRAN-1 application within the window period as extended.

Important Clarification

The Supreme Court's directions in Union of India v. Filco Trade Centre Pvt. Ltd. created a universal window for any aggrieved registered assessee to file or revise Form TRAN-1/TRAN-2 for transitional credit, regardless of whether the assessee had earlier approached a High Court or the ITGRC, and regardless of whether their writ petition predated the Supreme Court's ruling. Assessees who missed the original transitional credit deadline can rely on this window (as extended) to make good their claim, subject to verification by the department within the stipulated 90 days.

Sections Involved

  • Section 140, CGST Act, 2017 — governs transitional arrangements for Input Tax Credit carried forward from the pre-GST regime.
  • Rule 117, CGST Rules, 2017 — prescribes the manner and time limit for filing Form TRAN-1 to claim transitional credit.
  • Form GST TRAN-1 and TRAN-2 — the forms through which transitional credit is claimed.

Decision – In Favour of

The decision is in favour of the Assessee, with the petitioner permitted to avail the extended TRAN-1 filing window per the Supreme Court's directions in Filco Trade Centre.

Case Details

Court: High Court of Jharkhand at Ranchi
Case No.: W.P.(T) No.2557 of 2022
Coram: Justice Aparesh Kumar Singh and Justice Deepak Roshan
Date of Order: 04/05.09.2022

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