GST Transitional Credit: SC allows any aggrieved registered assessee

Proventus Life Sciences Pvt. Ltd Vs Commissioner (Madras High Court)

SC direction to Open GSTN portal available to “any aggrieved assessee”

The Hon’ble Madras High Court in M/s Proventus Life Sciences Pvt. Ltd, v. Revenue Department [W.P.No.7423 of 2019 & W.M.P.No.8093 of 2019 dated July 28, 2022] has clarified that the benefit of the Supreme Court decision directing the Government to open the Goods and Services Tax Network (“GSTN”) portal for taxpayers who wants to avail transitional credit, is available to any aggrieved registered assessee.

Facts:

M/s Proventus Life Sciences Pvt. Ltd (“the Petitioner”) contended that in the light of the recent judgment of the Supreme Court in the case of “Union of India and another vs. Filco Trade Centre Pvt. Ltd. and another [SLP (C) Nos.32700 – 32710 of 2018 dated July 22, 2022]”, the Petitioner is inclined to avail the benefit extended to all the assessee in the aforesaid order.

Issue:

Whether the Petitioner get benefit of the Supreme Court direction regarding reopening of GSTN portal from September 1, 2022 to October 31, 2022 to enable taxpayers to claim transitional credit?

Held:

The Hon’ble Madras High Court in W.P.No.7423 of 2019 & W.M.P.No.8093 of 2019 dated July 28, 2022 has issued a series of directions as extracted below:

• 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. September 1, 2022 to October 31, 2022.
• Considering the judgments of the High Courts, any aggrieved registered assessee is directed to file the relevant form or revise the already filed form irrespective of whether the taxpayer has filed writ petition before the High Court or whether the case of the taxpayer has been decided by Information Technology Grievance Redressal Committee (“ITGRC”).
• GSTN has to ensure that there is no technical glitch during the said time.
• The concerned officers are given 90 days thereafter to verify the veracity of the claim/transitional credit and pass appropriate orders thereon on merits after granting appropriate reasonable opportunity to the parties concerned.
• Thereafter, the allowed Transitional credit is to be reflected in the Electronic Credit Ledger.
• If required GST Council may also issue appropriate guidelines to the field formations in scrutinizing the claims.

Madras High Court clarified that Supreme Court in the case of Union of India and another V. Filco Trade Centre Pvt. Ltd. and another allowed ‘any aggrieved registered assessee’ to file a form seeking Transitional credit or revision thereof.

FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT

In light of the recent judgment of the Hon’ble Supreme Court in the case of 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.

2. The Hon’ble Court, has, in the aforesaid matter, issued a series of directions as extracted below:

1.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.

2. 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 writ petition before the High Court or whether the case of the taxpayer has been decided by Information Technology Grievance Redressal Committee (ITGRC).

3. GSTN has to ensure that there are no technical glitch during the said time.

4. The concerned officers are given 90 days thereafter to verify the veracity of the claim/transitional credit and pass appropriate orders thereon on merits after granting appropriate reasonable opportunity to the parties concerned.

5. Thereafter, the allowed Transitional credit is to be reflected in the Electronic Credit Ledger.

6. If required GST Council may also issue appropriate guidelines to the field formations in scrutinizing the claims.’

3. In specific, direction No.2 permits ‘any aggrieved registered assessee’ to file a form seeking Transitional credit or revision thereof.

4. This Writ Petition is thus disposed recording the aforesaid and in light of the endorsement made by the learned counsel for the petitioner. Connected writ miscellaneous petition is closed. No costs.

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