Facts of the Case

The petitioner, M/s Jindal Chemtech India Pvt. Ltd., Faridabad, approached the Punjab & Haryana High Court seeking relief concerning the filing/revision of TRAN-1/TRAN-2 forms for claiming Transitional Input Tax Credit (ITC) under the GST regime. During the proceedings, the respondents brought to the Court's notice the judgment of the Hon'ble Supreme Court in Union of India & Another vs Filco Trade Centre Pvt. Ltd. & Another dated 22.07.2022, wherein comprehensive directions had already been issued regarding reopening of the GST portal for transitional credit claims.

Issues Involved

  1. Whether the petitioner was entitled to relief for filing or revising TRAN-1/TRAN-2 forms for claiming transitional ITC.
  2. Whether the directions issued by the Hon'ble Supreme Court in Filco Trade Centre Pvt. Ltd. governed the relief sought by the petitioner.
  3. Whether any further adjudication by the High Court was required after the Supreme Court's directions.

Petitioner's Arguments

  • The petitioner sought permission to claim or revise Transitional Input Tax Credit through the prescribed GST forms.
  • Upon being informed that the Supreme Court had already granted comprehensive relief by directing reopening of the GST portal for all eligible taxpayers, the petitioner chose not to press the writ petition.

Respondents' Arguments

The respondents submitted that:

  • The Hon'ble Supreme Court, in Union of India & Another vs Filco Trade Centre Pvt. Ltd. & Another, had already directed:
    • GSTN to reopen the common portal for filing/revising TRAN-1 and TRAN-2.
    • All eligible taxpayers to avail the benefit irrespective of whether a writ petition had been filed or decided by the IT Grievance Redressal Committee.
    • GST authorities to verify claims and pass appropriate orders on merits after providing reasonable opportunity of hearing.
  • The respondents assured the High Court that these directions would be meticulously complied with.

Court Order / Findings

The Punjab & Haryana High Court observed that:

  • The controversy stood substantially covered by the judgment of the Hon'ble Supreme Court in Filco Trade Centre Pvt. Ltd.
  • Since the respondents undertook to comply with the Supreme Court's directions, no further adjudication was required.
  • The petitioner, in view of the Supreme Court's order, did not press the writ petition.
  • Accordingly, the writ petition as well as pending applications were disposed of.

Important Clarification

The judgment reiterates the binding effect of the Supreme Court's decision in Union of India & Another vs Filco Trade Centre Pvt. Ltd. & Another, under which:

  • GSTN was directed to reopen the common portal for TRAN-1 and TRAN-2.
  • All aggrieved registered taxpayers could file or revise transitional credit forms, irrespective of whether:
    • they had approached any High Court, or
    • their case had been decided by the IT Grievance Redressal Committee (ITGRC).
  • Authorities were required to verify claims on merits after granting reasonable opportunity of hearing.
  • Allowed transitional credit was to be reflected in the Electronic Credit Ledger after verification.

Sections Involved

  • Section 140 of the Central Goods and Services Tax Act, 2017 – Transitional Arrangements for Input Tax Credit.
  • Relevant provisions governing TRAN-1 and TRAN-2 under the GST transitional credit framework.

Link to Download the Order

https://www.mytaxexpert.co.in/uploads/1785303833_2154compressed.pdf

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