2022 (9) TMI 1385 - HC - GST

Reopening of portal for filing of form TRAN-1 - carry forward of CENVAT Credit - Section 140(3) of the CGST Act, 2017 - violation of principles of natural justice - HELD THAT - It is very clear that the assesses are given two months time for filing concerned forms for availing Transitional Credit through TRAN-1 and TRAN-2 i.e, w.e.f. 01.09.2022 to 31.10.2022. Further, the authorities were also directed to see that there would be no technical glitches during the said period. A reading of the said order does not anywhere indicate that the same pertains to a particular assessment year. It appears that any assessee, who intends to file concerned forms for availing Transitional Credit through TRAN-1 and TRAN-2 and was denied earlier because of some technical problem, is always at liberty to make use of the said order and upload the relevant forms during the relevant period. Petition allowed.

Summary

Issues:
- Petition seeking relief under Article 226 of the Constitution of India for reopening the portal to file TRAN-1 and claim Credit Carry Forward.
- Inaction of Respondents declared arbitrary and contrary to GST Act, Constitution of India, and principles of natural justice.
- Consideration of petitioner's request in light of Supreme Court order dated 22.07.2022.

Analysis:
1. The petitioner filed a Writ Petition under Article 226 seeking the reopening of the portal to file TRAN-1 and claim Credit Carry Forward as per Section 140(3) of the CGST Act, 2017. The petitioner alleged the inaction of the Respondents to be arbitrary, contrary to the provisions of the GST Act, and in violation of constitutional provisions and natural justice principles. The relief sought was either the immediate reopening of the portal or manual claim of Credit Carry Forward in the interest of justice and equity.

2. The key issue for consideration in this case was whether the petitioner's request could be entertained. The Hon'ble Supreme Court, in an order dated 22.07.2022, allowed the filing of Special Leave Petitions and directed the Goods and Service Tax Network (GSTN) to open the common portal for filing forms for availing Transitional Credit through TRAN-1 and TRAN-2 for a specific period. The order emphasized the need to avoid technical glitches during this period and granted 90 days for verification of claims by concerned officers, followed by reflection in the Electronic Credit Ledger.

3. The High Court, following the Supreme Court's order, allowed the Writ Petition to the extent of granting two months for filing the relevant forms for Transitional Credit. The order clarified that any aggrieved assessee could file the necessary forms during this period, irrespective of previous denials due to technical issues. The judgment did not limit the applicability to a specific assessment year, providing flexibility for all affected parties to benefit from the directive.

4. In conclusion, the Writ Petition was allowed in accordance with the Supreme Court's order, granting relief to the petitioner for filing Transitional Credit forms within the specified timeframe. The authorities were directed to ensure a smooth process without technical hindrances. The judgment highlighted the importance of facilitating the claims process for affected parties and emphasized compliance with the directives issued by the GST Council if necessary.