Tvl.Kodai Automobiles Limited Vs. The Goods and Service Tax Council

This writ petition seeks a writ of Mandamus directing the 1st Respondent to enable the Petitioner to file GST TRAN-1 electronically and treat it as filed in accordance with the law. It has been submitted by the learned counsels for both parties that the issue is already covered by the order of this Court in the case of M/s. A-One Tiles and M/s. Arihant Marble, Represented by its Proprietor Vs. The Assistant Commercial Tax Officer and others (W.P. Nos. 8870 and 8877 of 2019, dated 16.08.2022). In that case, the Court followed the judgment of the Hon’ble Supreme Court in Union of India and another V. Filco Trade Centre Private Limited and another (SLP (C) Nos. 32700 – 32710 of 2018, dated 22.07.2022). The relevant portion of the order from W.P. Nos. 8870 and 8877 of 2019, dated 16.08.2022, states:

“In light of the recent judgment of the Hon’ble Supreme Court in Union of India and another V. Filco Trade Centre Pvt. Ltd. and another (SLP (C) Nos. 32700 – 32710 of 2018 dated 22.07.2022), learned counsel for the petitioner, on instructions from the petitioner, would convey that the petitioner is inclined to avail the benefit extended to the assessees in the aforesaid order. An endorsement is also made to the aforesaid effect.

The Hon’ble Court, in the aforementioned matter, issued a series of directions as detailed below: Goods and Service Tax Network (GSTN) is directed to open a common portal for filing the concerned forms for availing Transitional Credit through TRAN-1 and TRAN-2 for two months i.e. from 01.09.2022 to 31.10.2022. Considering the judgments of the High Courts on the then-prevailing peculiar circumstances, any aggrieved registered assessee is directed to file the relevant form or revise the already filed form irrespective of whether the taxpayer has filed a writ petition before the High Court or whether the case of the taxpayer has been decided by the Information Technology Grievance Redressal Committee (ITGRC).”

In this context, the present petition aligns with the established judicial precedence that acknowledges the procedural difficulties faced by assessees during the transition to the GST regime. The Supreme Court’s order clearly intends to facilitate the assessees’ ability to claim Transitional Credit by reopening the filing window for TRAN-1 and TRAN-2 forms, thus mitigating any adverse impacts due to technical or procedural hurdles. The directive ensures that all eligible assessees have the opportunity to rectify or file their claims, even if they have not previously sought relief through writ petitions or ITGRC decisions. By following this precedent, the present petition reaffirms the necessity for a fair and accessible process for availing Transitional Credit, underscoring the judiciary’s commitment to uphold the assessees’ rights amidst systemic transition challenges.

The Goods and Service Tax Network (GSTN) must ensure there are no technical glitches during the specified time for filing or rectifying TRAN-1 and TRAN-2 forms. Following this period, officers are given 90 days to verify the claims and transitional credits, passing appropriate orders on their merits after providing a reasonable opportunity to the concerned parties. The verified and approved transitional credits are then to be reflected in the Electronic Credit Ledger. If necessary, the GST Council may issue guidelines to assist field formations in scrutinizing these claims. Specifically, direction No. 2 allows ‘any aggrieved registered assessee’ to file or revise a form seeking transitional credit.

In light of the above, the present writ petition stands disposed of on these terms. The learned counsel for the petitioner has made an endorsement that the petitioner is inclined to avail the benefits extended to the assessees in the aforementioned Supreme Court order. Consequently, the Court recognizes that the petitioner’s situation falls within the scope of the relief provided by the Supreme Court in Union of India and another V. Filco Trade Centre Private Limited and another (SLP (C) Nos. 32700 – 32710 of 2018, dated 22.07.2022), as cited in the recent judgments.

The Supreme Court’s directives are clear: the GSTN is responsible for ensuring a glitch-free experience during the reopening of the portal for transitional credit claims. The subsequent 90-day period allocated to officers for claim verification is a critical phase where due diligence must be exercised to ensure all legitimate claims are appropriately addressed. By reflecting the approved credits in the Electronic Credit Ledger, the process ensures transparency and efficiency in transitioning credits under the GST regime.

This decision underscores the judiciary’s proactive approach in addressing the technical and procedural challenges faced by assessees during the GST transition. The Court’s alignment with the Supreme Court’s precedent ensures that all eligible assessees, regardless of their previous actions or decisions by the ITGRC, have the opportunity to rectify or file their claims. This inclusive approach not only aids in fair credit distribution but also reinforces the judiciary’s commitment to upholding the rights of taxpayers in navigating systemic changes.

The petition, therefore, is resolved by extending the benefits outlined in the Supreme Court’s order to the petitioner, ensuring that no costs are imposed. This resolution reflects a balanced approach to addressing systemic issues while providing assessees the necessary leeway to comply with transitional requirements without undue hindrance.

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