2022 (11) TMI 1187 - HC - GST

Non-grant of transitional credit - Section 140 of the Central Goods and Services Tax Act, 2017 and the Assam Goods and Services Tax Act, 2017 - HELD THAT - Reliance placed in the 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. In terms of the Circular No. 180/12/2022-GST dated 09.09.2022, the time period for availing transitional credit through Tran- Tran-2 has been extended up to 30.11.2022. The writ petition is disposed of to enable the petitioner to take the benefit of the order.

Summary

Issues:
Challenging non-grant of transitional credit under Section 140 of CGST Act and Assam GST Act.

Analysis:
The petitioner contested the denial of transitional credit amounting to Rs. 92,70,685 under Section 140 of the Central Goods and Services Tax Act, 2017, and the Assam Goods and Services Tax Act, 2017. The petitioner faced technical glitches while trying to file the declaration form electronically, leading to manual submission within the extended time frame. Despite the manual submission, the respondent authorities failed to assist in uploading the data or granting credit. The petitioner sought to claim transitional credit for eligible duties on stock inputs as per CGST Act and CGST Rules.

The petitioner's counsel referenced an order by the Apex Court in a similar case and Circular No. 180/12/2022-GST issued by the Government of India, Ministry of Finance, Department of Revenue, Central Board of Indirect Taxes and Customs, GST Policy Wing. The Apex Court's order directed the GSTN to open a common portal for filing forms for availing Transitional Credit through TRAN-1 and TRAN-2 for a specified period, ensuring no technical glitches and providing a timeframe for verification and reflection of allowed Transitional credit in the Electronic Credit Ledger.

Both the petitioner's counsel and the Standing Counsel for the GST agreed that the petitioner should benefit from the Apex Court's order and the circular. The High Court disposed of the writ petition in line with the agreements of the parties, enabling the petitioner to avail the benefits outlined in the Apex Court's order and Circular No. 180/12/2022-GST. The time period for availing transitional credit was extended as per the circular, providing relief to the petitioner until 30.11.2022.