Case Law Details
Unique Infra Space Pvt. Ltd. Vs Union of India (Gujarat High Court)
All the captioned petitions constitute a group and what the petitioners have prayed is to direct the respondent authorities to permit the petitioners to file ‘Form GST Tran-I’ to enable the petitioners to claim the carried forward eligible duties of CENVAT/Input Tax Credit on account of Service Tax, Central Excise and Gujarat Value Added Tax on the appointed day, that is, 30.6.2017 in terms of Section 140 of the Goods and Services Tax Act, 2017 read with Rule 117 of the Central Goods and Services Tax Rules, 2017. It is prayed to declare that the due date contemplated under the aforesaid Rule to claim the transitional credit being procedural in nature is therefore directory and not mandatory. The petitioners want to be permitted to file GST Tran – I electronically or manually to claim the CENVAT/ Input Credit.
2. Noticing the basic facts in brief from the first captioned petition, the petitioner was registered under the Gujarat Value Added Tax, 2003 as well as under the provisions of Service Tax. The indirect tax regime transitioned from Value Added Tax/ Service Tax/ Central Excise regime into Goods and Service Tax regime. Such new regime under the CGST Tax and GGST Tax allowed to carry forward the credit of eligible taxes and duties paid on input services which were not availed as input tax credit on the appointed day, that is, 1.7.2017 being the date when the CGST Act came into force. TRAN-1 was required to be filed under the CGST Tax Rules before 30.9.2017.
3. All the learned advocates appearing for the respective parties are ad idem that the issue involved and required to be addressed in this captioned group of petitions, has been answered by the Apex Court in case of Union of India and anr vs. Filco Trade Centre Pvt. Ltd and anr in Special Leave to Appeal No. 32709–327010 of 2018 and another allied matters decided on 22.07.2020.
4. The Supreme Court issued the following directions disposing of the Special Leave to Appeal:
“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.
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.”
5. It goes without saying that the aforesaid decision of the Supreme Court shall govern the right of the parties. All the petitions are accordingly disposed of in the above terms. Notice is discharged. Interim orders are vacated.
