M/S Shree Trading Co. vs. Union Of INDIA And Others

Held

The Court disposed of the writ petition without expressing an opinion on the merits of the case. It granted the petitioner liberty to file a detailed and comprehensive representation before the Nodal Officer within five days of receiving the order, raising all pleas made in the writ petition. The Court directed that upon filing, such representation, along with any previously filed representation, would be forwarded to the IT Redressal Committee within fifteen days after verification by GSTN. The Committee was then directed to decide the representation in terms of clause 5.4 of Circular No. 39/13/2018-GST dated April 3, 2018, by passing a speaking order and affording the petitioner an opportunity of hearing within four weeks of receiving the representation. The petitioner was permitted to lead evidence to substantiate their claim. No specific issue was left undecided; rather, a procedural path for resolution was laid out.

Facts

The petitioner, M/s Shree Trading Co., is registered under the Punjab VAT Act, 2005, CST Act, and the GST Act, 2017. Following migration to the GST Act, the petitioner faced difficulties. Specifically, the petitioner filed Form GST (TRAN-01) on August 31, 2017, to claim VAT credit. While the GST portal showed the VAT credit, it was not reflected in the petitioner's account. Aggrieved, the petitioner filed a complaint on June 29, 2018, which was acknowledged but not acted upon. The petitioner approached the High Court, noting that the Delhi High Court had disposed of similar matters and the Government had issued Circular No. 39/13/2018-GST advising assessees to approach the Redressal Committee for issues related to TRAN-01 filing.

Key Issues

1. Whether the petitioner is entitled to have its claim for VAT credit, filed through Form GST (TRAN-01), reflected in its GST account, given the difficulties faced post-migration to the GST Act, 2017? (Question of law and fact, turning on the provisions related to transitional credit under the GST Act). Petitioner's contention: The petitioner argued that despite filing Form GST (TRAN-01) and the credit being shown on the GST portal, it was not reflected in their account, causing grievance. They relied on the fact that similar issues were addressed by the Delhi High Court and the Government's circular suggesting redressal mechanisms. Respondents' contention: The respondents did not explicitly record any arguments against the petitioner's claim for reflection of credit. However, they were represented and participated in the proceedings.