M/S. Sk Green Home Appliances PVT. LTD. vs. Union Of INDIA

Held

The Court disposed of all the captioned petitions in terms of the directions issued by the Supreme Court in the case of Union of India and anr vs. Filco Trade Centre Pvt. Ltd and anr. The Supreme Court had directed the Goods and Service Tax Network (GSTN) to open a common portal for filing concerned forms for availing Transitional Credit through TRAN-1 and TRAN-2 for a period of two months, from September 1, 2022, to October 31, 2022. Any aggrieved registered assessee was permitted to file the relevant form or revise an already filed form, irrespective of whether they had filed a writ petition or if their case had been decided by the ITGRC. The GSTN was to ensure no technical glitches during this period. Following this, concerned officers were given 90 days to verify the claims and pass appropriate orders on merits after granting an opportunity to the parties. Subsequently, the allowed transitional credit was to be reflected in the Electronic Credit Ledger. The Supreme Court also suggested that the GST Council might issue guidelines for scrutinizing claims.

Facts

The petitioners, registered under previous indirect tax laws like Gujarat Value Added Tax, Service Tax, and Central Excise, sought to carry forward their eligible CENVAT/Input Tax Credit to the Goods and Services Tax (GST) regime. They were required to file 'Form GST Tran-I' by a specified due date, which they failed to do. Consequently, they approached the High Court seeking directions to permit them to file this form, either electronically or manually, to claim the transitional credit. The core of their grievance was that the due date for filing Form GST Tran-I was procedural and directory, not mandatory, and that they should not be denied their eligible credit due to this procedural lapse.

Key Issues

1. Whether the due date for filing Form GST Tran-I, as contemplated under Rule 117 of the Central Goods and Services Tax Rules, 2017, is directory or mandatory, thereby determining if petitioners can be permitted to file the form beyond the prescribed deadline to claim transitional credit under Section 140 of the CGST Act, 2017. Petitioner's contention: The petitioners argued that the due date for filing Form GST Tran-I is procedural and directory in nature. They contended that failure to file within the stipulated time should not result in the forfeiture of their legitimate transitional credit, as the right to claim such credit is substantive. They sought permission to file the form electronically or manually. Revenue's contention: The judgment does not record specific arguments made by the revenue or state authorities. However, the context implies that the revenue likely relied on the statutory timelines prescribed for filing the form.