2022 (8) TMI 1281 - HC - GST

Validity and legality thereof to grant Tran-1 credit - opening of portal for filing of forms for availing transitional credit - Section 140 of CGST Act 2017 and Section 140 of CGST Act 2017 read with Rule 117 of CGST Rules 2017 - 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 has 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. Petition disposed off.

Summary

Issues:
1. Petitioner seeking Tran-1 credit under GST regime.
2. Numerical error in FORM GST TRAN-1 submission.
3. Inability to submit revised TRAN-1 due to portal issues.
4. Applicability of Supreme Court directions on Transitional Credit.

Detailed Analysis:
1. The petitioner, a company engaged in job work and holding GST registration, sought Tran-1 credit of INR 20,70,823 under Article 226 of the Constitution. The petitioner's claim was based on Section 140 of the CGST Act, 2017, allowing migration of credit balance from previous taxation regimes into the GST regime. However, due to a numerical error in FORM GST TRAN-1 submission, the petitioner claimed only Rs. 21,79,975 instead of Rs. 42,50,798 by the deadline of 27.12.2017.

2. Despite attempting to submit a revised TRAN-1 after the deadline, the petitioner encountered portal issues preventing the submission. The petitioner notified the authorities via email about the problem but received no response. Consequently, the petitioner filed a petition seeking directions to grant the credit amount claimed initially and allow for the submission of a fresh FORM GST TRAN-1.

3. The issue at hand was addressed by the Apex Court in a previous case where directions were issued regarding Transitional Credit. 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 specific period. It mandated that any aggrieved registered assessee could file or revise forms, irrespective of pending writ petitions or decisions by relevant committees. The GSTN was instructed to ensure no technical glitches during the specified time, with officers given 90 days to verify claims and reflect allowed Transitional credit in the Electronic Credit Ledger.

4. Considering the Supreme Court's directives on Transitional Credit, the High Court disposed of the petition in line with the mentioned directions. The judgment emphasized that the Supreme Court's decision would govern the rights of the parties involved, providing clarity on the procedure for availing Transitional Credit under the GST regime.