2022 (8) TMI 1041 - HC - GST

Permission to petitioners to manually file Form GST TRAN-1 - Seeking transmission towards unutilised accumulated CENVAT credit balance of the Education Cess and Secondary Higher Education Cess - HELD THAT - The issue involved and required to be addressed in this petition has been answered by the Apex Court in case of UNION OF INDIA ANR. VERSUS FILCO TRADE CENTRE PVT. LTD. ANR. 2022 (7) TMI 1232 - SC ORDER where it was held that Goods and Service Tax Network (GSTN) is directed to open common portal for filing concerned forms for availing Transitional Credit through TRAN-1 and TRAN-2 for two months i.e. w.e.f. 01.09.2022 to 31.10.2022. It goes without saying that the decision of the Supreme Court shall govern the right of the parties - petition disposed off.

Summary

Issues:
1. Petitioner's claim for transmission of unutilized accumulated CENVAT credit balance of Education Cess and Secondary & Higher Education Cess.
2. Petitioner's request to file Form GST TRAN-1 for claiming transitional credit.
3. Interpretation of the due date for claiming transitional credit under Rule 117 of the Central Goods and Services Tax Rules, 2017.
4. Applicability of the Supreme Court's directions in the case of Union of India vs. Filco Trade Centre Pvt. Ltd regarding availing Transitional Credit.

Analysis:

1. The petitioner sought the transmission of Rs. 43,73,628 towards unutilized accumulated CENVAT credit balance of Education Cess and Secondary & Higher Education Cess. The petitioner filed Form ER-1 Returns for June 2017 for nine manufacturing units before the GST regime came into effect on 1.7.2017. While the petitioner received credit in the Electronic Credit Ledger for various taxes, the credit for Educational Cess and Secondary & Higher Secondary Education Cess was not granted. The relief sought was for the respondents to transmit the uncredited amount to the petitioner's Electronic Credit Ledger.

2. The petitioner aimed to file Form GST TRAN-1 to claim the carried forward eligible duties of CENVAT/Input Tax Credit for Service Tax, Central Excise, and Gujarat Value Added Tax as per Section 140 of the Goods and Services Tax Act, 2017. The petitioner argued that the due date under Rule 117 for claiming transitional credit should be considered directory, not mandatory. The petitioner requested permission to file GST TRAN-1 electronically or manually to claim the CENVAT/Input Credit.

3. The petitioner's advocate referenced a Supreme Court case, Union of India vs. Filco Trade Centre Pvt. Ltd, where the Apex Court provided directions regarding availing Transitional Credit through TRAN-1 and TRAN-2. The Supreme Court directed the Goods and Service Tax Network (GSTN) to open a common portal for filing relevant forms for availing Transitional Credit for a specified period. The Court also instructed GSTN to ensure no technical glitches during the filing period and allowed officers 90 days to verify claims and reflect allowed Transitional credit in the Electronic Credit Ledger.

4. Based on the Supreme Court's directions in the mentioned case, the High Court concluded that the petitioner's rights would be governed by the Supreme Court's decision. Consequently, the petition was disposed of in accordance with the directions issued by the Supreme Court, ensuring the petitioner's claims for transitional credit were addressed and verified within the specified framework provided by the Apex Court.