M/S.Vetrivel Engineering vs. The Prl.Chief Commissioner
Original PDF →Facts
The petitioner, M/s. Vetrivel Engineering Enterprises, filed a writ petition seeking a Mandamus to direct the Principal Chief Commissioner of GST to enable them to file GST TRAN 1 electronically and to treat it as filed in accordance with law. The petitioner sought to avail transitional credit. The respondents included various GST authorities and the Union of India. The case was listed before the Madurai Bench of the Madras High Court. The learned counsels for both parties submitted that the issue was covered by a previous order of the same High Court in the case of M/s.A-One Tiles and M/s.Arihant Marble, which in turn followed a judgment of the Supreme Court in Union of India V. Filco Trade Centre Private Limited.
Held
The Court held that the issue was covered by the Supreme Court's judgment in Union of India V. Filco Trade Centre Private Limited and the High Court's subsequent order in M/s.A-One Tiles and M/s.Arihant Marble. Following these precedents, the Court 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. The Court further directed that any aggrieved registered assessee could file the relevant form or revise an already filed form, irrespective of whether a writ petition was filed or if the case was decided by the ITGRC. GSTN was to ensure no technical glitches during this period. Concerned officers were granted 90 days thereafter to verify claims and pass orders on merits after granting an opportunity to the parties. Allowed transitional credit would then be reflected in the Electronic Credit Ledger. The Court noted that the petitioner's counsel, on instructions, conveyed the petitioner's inclination to avail the benefit extended by the order. The writ petition was disposed of on these terms.
Key Issues
1. Whether the petitioner, as an aggrieved registered assessee, is entitled to be enabled to file GST TRAN 1 electronically to claim transitional credit, in light of the Supreme Court's decision in Union of India V. Filco Trade Centre Private Limited? Petitioner's Contention: The petitioner argued that they are an aggrieved registered assessee and should be allowed to file GST TRAN 1 electronically to claim transitional credit, relying on the directions issued by the Supreme Court in the Filco Trade Centre case and subsequently by the High Court in similar matters. They sought to avail the benefit extended to assessees under these judgments. Revenue's Contention: The respondents did not present any specific arguments against the petitioner's claim, but rather acknowledged that the issue was covered by the aforementioned Supreme Court and High Court judgments. They indicated their willingness to abide by the directions issued in those cases.
Sections Cited
TRAN 1, TRAN 2
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
ORDER This writ petition is filed praying for a writ of Mandamus directing the 1st Respondent to enable the Petitioner to file GST TRAN 1 electronically and treat it as filed in accordance with law.
It is submitted by the learned counsels for both the parties that the issue stands covered by the order of this Court in the case of M/s.A-One Tiles 2/6 https://www.mhc.tn.gov.in/judis and M/s.Arihant Marble, Represented by its Proprietor Vs The Assistant Commercial Tax Officer and others (W.PNos.8870 and 8877 of 2019, dated 16.08.2022) wherein, the judgment of the Hon'ble Supreme Court in the case of Union of India and another V.Filco Trade Centre Private Limited and another (SLP (C) Nos.32700 – 32710 of 2018, dated 22.07.2022) was followed. The relevant portion of the order of this Court in W.P.Nos.8870 and 8877of 2019, dated 16.08.2022 is extracted below: “In light of the recent judgment of the Hon'ble Supreme Court in the case of Union of India and another V. Filco Trade Centre Pvt. Ltd. and another (SLP (C) Nos.32700 – 32710 of 2018 dated 22.07.2022), learned counsel for the petitioner, on instructions from the petitioner, would convey that the petitioner is inclined to avail the benefit extended to the assessees in the aforesaid order. An endorsement is also made to the aforesaid effect.
The Hon'ble Court, has, in the aforesaid matter, issued a series of directions as extracted below: 1.Goods and Service Tax Network (GSTN) is directed to open common portal for filing concerned forms for availing Transitional Credit through TRAN-1 and TRAN-2 for two months i.e. w.e.f. 01.09.2022 to 31.10.2022. 2. Considering the judgments of the High Courts on the then prevailing peculiar circumstances, any aggrieved registered assessee is directed to file the relevant form or revise the already filed form irrespective of whether the taxpayer has filed writ petition before the High Court or whether the case of the taxpayer has been decided by Information Technology Grievance Redressal Committee (ITGRC). 3/6 https://www.mhc.tn.gov.in/judis
GSTN has to ensure that there are no technical glitch during the said time.
The concerned officers are given 90 days thereafter to verify the veracity of the claim/transitional credit and pass appropriate orders thereon on merits after granting appropriate reasonable opportunity to the parties concerned.
Thereafter, the allowed Transitional credit is to be reflected in the Electronic Credit Ledger.
If required GST Council may also issue appropriate guidelines to the field formations in scrutinizing the claims.
In specific, direction No.2 permits 'any aggrieved registered assessee' to file a form seeking Transitional credit or revision thereof.”
The Writ Petition stands disposed of on the above terms. An endorsement has been made by the learned counsel for the petitioner stating that the petitioner is inclined to avail the benefit extended to the assessees in the aforesaid order . No costs.
2022 Index : Yes / No Internet : Yes/ No sn 4/6 https://www.mhc.tn.gov.in/judis To 1.The Principal Chief Commissioner, Goods and Services Tax Act, (Previously Central Excise and Customs), GST Bhavan, 26/1,Mahatma Gandhi Road, Nungambakkam, Chennai-600 034. 2.The Secretary, The Union of India, Ministry of Finance, Department of Revenue, North Block, New Delhi-110 001. 3.The Chairman, Goods and Service Tax Network (GSTIN), East Wing, World Mark-1, 4th Floor, Tower B, Aerocity, Indira Gandhi International Airport, New Delhi-110 037. 4.The Government of Tamil Nadu, Represented by its Secretary, State Tax Department, Fort St.George, Chennai-600 009. 5.The Assitant Commissioner of GST and Excise, Division-I, No.1, Williams Road, Contonement, Trichy. 5/6 https://www.mhc.tn.gov.in/judis MOHAMMED SHAFFIQ, J.
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2022 6/6 https://www.mhc.tn.gov.in/judis
Reproduced from the public record of the Madras High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.