2022 (11) TMI 321 - HC - GST

Input Tax Credit - inaction on the part of the respondents in not enabling Form GST TRAN-1 of the Petitioner through GST portal for claiming the transitional credit available in VAT returns - violation of 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:
1. Petition seeking relief for enabling Form GST TRAN-1 through GST portal for claiming transitional credit.
2. Consideration of the petitioner's request in light of the Supreme Court's order.
3. Interpretation of the directions issued by the Supreme Court regarding Transitional Credit.

Analysis:
1. The petitioner filed a Writ Petition under Article 226 seeking the enabling of Form GST TRAN-1 through the GST portal to claim transitional credit from VAT returns. The relief sought was to declare the inaction of the respondents as illegal, arbitrary, and violative of natural justice. The petitioner highlighted technical glitches preventing the consideration of periodical returns filed as per the GST Act, 2017 and April 2018 notifications.

2. The Supreme Court's order dated 22.07.2022 in Petitions for Special Leave to Appeal directed the Goods and Service Tax Network (GSTN) to open a common portal for filing forms for availing Transitional Credit through TRAN-1 and TRAN-2 for two months starting from 01.09.2022. The order emphasized the absence of technical glitches during this period and allowed registered assesses to file or revise forms regardless of pending writ petitions or decisions by ITGRC. The concerned officers were given 90 days to verify claims and reflect allowed Transitional credit in the Electronic Credit Ledger.

3. The High Court interpreted the Supreme Court's order as providing a general opportunity for all assesses to avail Transitional Credit through TRAN-1 and TRAN-2 within the specified two-month period without reference to a particular assessment year. The Court allowed the Writ Petition in line with the Supreme Court's directions, granting relief to the petitioner to upload relevant forms during the stipulated period. The judgment did not impose any costs, and miscellaneous petitions in the Writ Petition were closed accordingly.