Aarti Industries Limited vs. Union Of INDIA

Held

The Court noted that the issue involved had been addressed by the Apex Court in Union of India and anr vs. Filco Trade Centre Pvt. Ltd and anr. The Supreme Court, in its order dated July 22, 2020, 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 two months (September 1, 2022, to October 31, 2022). Any aggrieved registered assessee was directed to file the relevant form or revise an already filed form, irrespective of whether a writ petition was filed or the case was decided by the ITGRC. GSTN was to ensure no technical glitches. Concerned officers were given 90 days thereafter to verify claims and pass orders on merits after granting an opportunity to parties. Allowed transitional credit would then be reflected in the Electronic Credit Ledger. The High Court held that this decision of the Supreme Court shall govern the rights of the parties and disposed of the petition accordingly.

Facts

The petitioner, Aarti Industries Limited, filed Form ER-1 Returns for June 2017 for its nine manufacturing units before the Goods and Services Tax (GST) regime came into effect on July 1, 2017. The petitioner subsequently filed Form GST TRAN-1 to claim transitional credit. However, the petitioner alleges that an accumulated CENVAT credit balance of Rs. 43,73,628/- towards unutilised Education Cess and Secondary & Higher Education Cess was not credited to its Electronic Credit Ledger. The petitioner sought a direction to transmit this amount by allowing manual filing of Form GST TRAN-1 and to credit the said amount to its Electronic Credit Ledger.

Key Issues

1. Whether the petitioner is entitled to claim the unutilised accumulated CENVAT credit balance of Education Cess and Secondary & Higher Education Cess by allowing manual filing of Form GST TRAN-1, considering the due date for filing was missed? The petitioner argued that the due date for filing Form GST TRAN-1, as contemplated under Rule 117 of the Central Goods and Services Tax Rules, 2017, is procedural and directory, not mandatory. They contended that they should be permitted to file the form electronically or manually to claim the eligible CENVAT/Input Credit. The petitioner relied on the Supreme Court's decision in Union of India and anr vs. Filco Trade Centre Pvt. Ltd and anr. The revenue or State's arguments are not recorded in the judgment.