2019 (1) TMI 1582 - HC - GST

Filing of TRAN-1 - transitional credit - transition to GST regime - HELD THAT - The Court is of the opinion that the authorities should take all expedious steps to ensure that the certificate is issued by the Bombay Commissionerate to enable further steps to be taken by the Commissionerate of Delhi, Karnataka and Gujarat. Since the first step towards distribution of the input credit claim is the certificate to be issued by the Bombay Commissionerate, the respondent shall pass appropriate orders ensuring that the Bombay High Court s orders are respected and complied with utmost expedience. List on 27th March, 2019.

Summary

Issues:
- Interpretation of Bombay High Court's direction regarding distribution of Input Credit
- Compliance with the Bombay High Court's order in W.P.(C) 2229/2018
- Steps to be taken by the authorities for issuance of certificate by Bombay Commissionerate
- Verification process by other Commissionerates, especially Delhi Commissionerate

Interpretation of Bombay High Court's direction regarding distribution of Input Credit:
The judgment delves into the interpretation of the Bombay High Court's direction in W.P.(C) 2229/2018 regarding the distribution of Input Credit available with the petitioners among its branches/locations. The High Court acknowledges the importance of the direction, emphasizing that the petitioners are entitled to distribute the Input Credit as on 1st July 2017. The judgment highlights the technical problems faced by the respondents in this distribution and the deadline for availing the input tax credit, as stipulated by Section 16(4) of the Act. It underscores the necessity for manual filing in physical form due to system limitations and the need for certification by the Commissioner at Mumbai for credit transfer to locations in Delhi, Gujarat, and Karnataka.

Compliance with the Bombay High Court's order in W.P.(C) 2229/2018:
The judgment stresses the need for compliance with the Bombay High Court's order, particularly in ensuring that the petitioners are not deprived of the input tax credit available to them. It directs the authorities to take expedient steps to facilitate the issuance of the certificate by the Bombay Commissionerate, which serves as the initial step towards the distribution of the input credit claim. The High Court emphasizes the importance of respecting and complying with the Bombay High Court's orders promptly to enable further actions by the Commissionerates of Delhi, Karnataka, and Gujarat.

Steps to be taken by the authorities for issuance of certificate by Bombay Commissionerate:
In line with the directives of the Bombay High Court, the judgment outlines the steps to be taken by the authorities for the issuance of the certificate by the Bombay Commissionerate. It mandates the respondent to pass appropriate orders to ensure that the Bombay High Court's orders are promptly adhered to. Furthermore, it specifies that other Commissionerates, especially the Delhi Commissionerate, must undertake and complete verification within four weeks of receiving the orders, emphasizing the need for expeditious action in this regard.

Verification process by other Commissionerates, especially Delhi Commissionerate:
The judgment underscores the significance of the verification process by other Commissionerates, with a specific focus on the Delhi Commissionerate. It directs these Commissionerates to ensure that verification is conducted and finalized within a stipulated timeframe of four weeks from the receipt of the orders. By setting this deadline, the High Court aims to streamline the process and facilitate the distribution of input credit in compliance with the Bombay High Court's directives.

Conclusion:
The judgment provides a detailed analysis of the issues surrounding the interpretation and compliance with the Bombay High Court's direction regarding the distribution of Input Credit. It outlines the necessary steps to be taken by the authorities to expedite the issuance of the certificate by the Bombay Commissionerate and the subsequent verification process by other Commissionerates, particularly the Delhi Commissionerate. The High Court's emphasis on prompt action underscores the importance of adhering to legal directives and ensuring the efficient implementation of the court's orders.