M/S Rockland Media And Communication PVT. LTD. vs. Union Of INDIA And 5 Ors.

Held

The Court held that the writ petition should be disposed of in terms of the Apex Court's order dated 22.07.2022 in Union of India & Anr v. Filco Trade Centre Pvt. Ltd & Anr. and Circular No. 180/12/2022-GST dated 09.09.2022. The Apex Court's order directed the GSTN to open a common portal for filing TRAN-1 and TRAN-2 forms for two months (September 1 to October 31, 2022), allowing aggrieved registered assessees to file or revise their forms irrespective of prior writ petitions or ITGRC decisions. GSTN was to ensure no technical glitches during this period, and concerned officers were given 90 days thereafter to verify claims and pass orders on merits after granting an opportunity to parties. The Circular extended the time period for availing transitional credit through TRAN-1 and TRAN-2 up to 30.11.2022. The Court's decision was based on the agreement of both parties.

Facts

The petitioner, M/s Rockland Media and Communication Pvt. Ltd., sought to challenge the non-grant of transitional credit under Section 140 of the CGST Act, 2017 and the Assam GST Act, 2017. The petitioner claimed Cenvat Credit amounting to Rs. 92,70,685/- admissible as ITC of Central Tax. They faced technical glitches while trying to file the declaration form electronically in FORM GST TRAN-1. Despite extensions, they could not submit it online and consequently filed it manually within the extended period. The petitioner requested the respondent authorities to accept the manually submitted data and assist in uploading it, but no help was provided. This prevented the petitioner from claiming transitional credit for inputs held in stock on the appointed day.

Key Issues

1. Whether the petitioner is entitled to transitional credit under Section 140 of the CGST Act, 2017 and Rule 117 of the CGST Rules, 2017, despite failing to file FORM GST TRAN-1 electronically due to technical glitches? Petitioner's Argument: The petitioner argued that the writ petition could be disposed of in terms of the Apex Court's order in Union of India & Anr v. Filco Trade Centre Pvt. Ltd & Anr. (dated 22.07.2022) and Circular No. 180/12/2022-GST (dated 09.09.2022). They contended that these directives provide a mechanism for taxpayers facing similar issues to claim transitional credit. Revenue's Argument: The learned Standing Counsel for the GST stated that he had no quarrel with the submission made by the petitioner's counsel, implying agreement with the petitioner's proposed course of action based on the Apex Court's order and the Circular.