SIDDHARTH ENTERPRISES vs. THE NODAL OFFICER

Since the issues raised in all the captioned writ applications are identical, they were heard together and are being disposed of by this common judgment and order. RULE is made returnable forthwith in all the captioned writ applications. Mr. Soaham Joshi, the learned Assistant Government Pleader (AGP), waives service of notice of rule on behalf of respondents nos. 1 and 2. For the sake of convenience, Special Civil Application No. 5758 of 2019 is treated as the lead matter.

The writ applicant, a partnership firm, has approached this Court under Article 226 of the Constitution of India, seeking several significant reliefs. The primary relief sought is a writ of mandamus or any other appropriate writ to allow the filing of declarations in form GST TRAN-1 and GST TRAN-2. This would enable the applicant to claim transitional credit for eligible duties on inputs held in stock as of the appointed day, in accordance with Section 140(3) of the Central Goods and Services Tax Act, 2017. The writ applicant argues that this credit is essential for the seamless transition from the previous tax regime to the new GST regime.

Additionally, the writ applicant seeks a writ of declaration or any other appropriate writ to declare that the due date specified under Rule 117 of the CGST Rules for claiming transitional credit is merely procedural and directory in nature, rather than mandatory. This interpretation would allow for flexibility in meeting the due date requirements, which the applicant argues are overly rigid and do not account for various practical difficulties faced by taxpayers during the transition period.

In support of this, the applicant has requested ad-interim reliefs, including the provisional acceptance of the declarations in form GST TRAN-1 and GST TRAN-2 while the matter is under judicial consideration. This interim relief is crucial to prevent any further financial or operational disruption to the applicant’s business while the case is being decided.

Furthermore, the writ applicant seeks an award of costs and incidental expenses related to this application to be paid by the respondents. This is to ensure that the applicant is not unduly burdened with legal expenses incurred due to the need to seek judicial intervention for reliefs that should reasonably have been granted by the tax authorities.

Lastly, the applicant requests any other orders, directions, writs, or reliefs that this Hon’ble Court deems fit and proper in the facts and circumstances of the case and in the interest of justice. The applicant emphasizes that the transition to the GST regime has been fraught with challenges and that the rigid application of procedural rules should not result in the denial of substantive tax benefits that were accrued under the previous regime.

In summary, the writ applicant’s case revolves around the need for judicial intervention to ensure that the transition to the GST regime is fair and just, particularly in terms of claiming transitional credits. The applicant contends that procedural lapses or delays should not be grounds for denying these credits, which are crucial for maintaining business continuity and financial stability. The reliefs sought aim to rectify what the applicant views as an overly rigid and punitive approach by the tax authorities, ensuring that the transition to the new tax regime does not result in undue hardship or double taxation for taxpayers.

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