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

Facts

The petitioner, M/s. Bharat Motors Ltd., filed a writ petition before the Orissa High Court seeking permission to file a revised TRAN-1 form, either electronically or manually. The petitioner contended that the delay in filing the TRAN-1 form was attributable to the Covid-19 pandemic. The impugned order under challenge was a letter dated 3rd June 2020 issued by the Joint Commissioner of CT & GST (IT), and a decision of the High Level Committee (IT-GRC). The revenue was represented by the Union of India and others, including the Sales Tax Department.

Held

The Court, following the Supreme Court's decision in Union of India v. Filco Trade Centre Pvt. Ltd., set 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). 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 instructed to ensure no technical glitches occurred during this period. The concerned officers were given 90 days thereafter to verify the claims and pass orders on merits after providing 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 might issue guidelines for scrutinizing such claims.

Key Issues

1. Whether the petitioner should be permitted to file the revised TRAN-1 form, electronically or manually, given the delay caused by the Covid-19 pandemic? The petitioner argued that the delay in filing the TRAN-1 form was a direct consequence of the unprecedented circumstances arising from the Covid-19 pandemic, and therefore, they should be granted an opportunity to rectify their filing. The petitioner relied on the Supreme Court's judgment in Union of India v. Filco Trade Centre Pvt. Ltd. (2022 LiveLaw (SC) 628) to support their plea. The revenue, represented by the Union of India and others, did not appear to have recorded specific arguments against the petitioner's plea for filing the revised TRAN-1 form, but the court's directions indicate a process for verification and adjudication of such claims.