M/S Shree Bharat Motors LTD.,Khurda vs. The Union Of INDIA

Facts

The petitioner, M/s. Shree Bharat Motors Ltd., filed a writ petition seeking permission to file a revised TRAN-1 form, either electronically or manually, attributing the delay to the Covid-19 pandemic. The impugned order was a letter dated 3rd June 2020 from the Joint Commissioner of CT & GST (IT), and the decision of the High Level Committee (IT-GRC) was also under challenge. The core of the dispute revolved around the petitioner's inability to file the transitional credit forms within the stipulated time due to pandemic-related disruptions.

Held

The Court allowed the writ petition, setting aside the impugned letter dated 3rd June 2020 of the Joint Commissioner of CT & GST (IT) and the decision of the High Level Committee (IT-GRC). Following the Supreme Court's decision in Union of India v. Filco Trade Centre Pvt. Ltd., the Court directed the Goods and Service Tax Network (GSTN) to open a common portal for filing TRAN-1 and TRAN-2 forms for availing transitional credit for a period of two months, from September 1, 2022, to October 31, 2022. The Court further directed that any aggrieved registered assessee, irrespective of whether they had filed a writ petition or had their case decided by the ITGRC, could file or revise their forms. GSTN was mandated to ensure no technical glitches during this period. Concerned officers were granted 90 days thereafter to verify the claims and pass orders on merits after affording an opportunity to the parties. Allowed transitional credit would then be reflected in the Electronic Credit Ledger. The Court also suggested that the GST Council may issue guidelines for scrutinizing such claims.

Key Issues

1. Whether the petitioner should be permitted to file the revised TRAN-1 form, either electronically or manually, on account of delays caused by the Covid-19 pandemic? The petitioner argued that the delay in filing the TRAN-1 form was directly attributable to the unprecedented circumstances arising from the Covid-19 pandemic, hindering their ability to comply with the statutory timelines. The revenue's arguments are not explicitly recorded in the judgment. The court considered the Supreme Court's judgment in Union of India v. Filco Trade Centre Pvt. Ltd. (2022 LiveLaw (SC) 628) and various High Court judgments dealing with similar situations arising from the pandemic.