Principal Nodal Officer Represented By Principal Commissioner Of CGST And Cx Kolkata South vs. Purv Flexipack PVT LTD And Ors
Original PDF →Facts
This intra-court appeal was filed by the Principal Nodal Officer, GST Department, challenging an order dated July 1, 2022, passed by a single judge in a batch of writ petitions. The writ petitions had challenged the vires of Rule 117 of the Central Goods and Services Tax Rules, 2017, and Rule 117 of the West Bengal GST Rules, 2017. The appellant argued that the single judge's order was erroneous. The High Court noted that an identical issue was previously dealt with in the case of Union of India Vs. Baljit Iron Private Limited & Ors. (MAT 16 of 2022) by a judgment and order dated July 26, 2022, which disposed of the appeal.
Held
The High Court held that no further orders were required in the present appeal in light of the comprehensive directions issued by the Hon'ble Supreme Court in the case of Union of India & Anr. – Vs. – FILCO Trade Centre Pvt. Ltd. & Anr. dated July 22, 2022. These directions included opening a common portal for filing TRAN-1 and TRAN-2 forms for two months (September 1, 2022, to October 31, 2022), allowing aggrieved registered assessees to file or revise forms irrespective of prior writ petitions or ITGRC decisions, ensuring no technical glitches, and granting officers 90 days thereafter to verify claims and pass orders. The Court also noted a subsequent extension of time by the Supreme Court on September 2, 2022, for opening the portal. Consequently, the appeal and connected application were disposed of in terms of the Supreme Court's order. The ratio decidendi is that when the Supreme Court provides comprehensive directions on a matter, High Courts should follow those directions, rendering separate adjudication on the same issue unnecessary.
Key Issues
1. Whether the High Court's previous judgment in Union of India Vs. Baljit Iron Private Limited & Ors. (MAT 16 of 2022) correctly addressed the issue of availing transitional credit through TRAN 1 and TRAN 2 in light of the Supreme Court's directions. Petitioner's Argument: The appellant (Principal Nodal Officer, GST Department) argued that the impugned order of the single judge was incorrect and that the appeal should be decided based on the Supreme Court's directions. They relied on the Supreme Court's order in Union of India & Anr. – Vs. – FILCO Trade Centre Pvt. Ltd. & Anr. dated July 22, 2022. Revenue/State's Argument: The respondents (Purv Flexipack Private Limited & Ors.) did not explicitly present arguments in the provided text, but their position was implicitly represented by the writ petitions they had filed challenging the GST Rules. The judgment indicates that the Supreme Court's order addressed the grievances of various private parties, including taxpayers seeking transitional credit.
Sections Cited
Rule 117
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
JUDGMENT (Judgment of the Court was delivered by T.S. SIVAGNANAM, J.)
Private Limited & Ors. in MAT 16 of 2022 by judgment and order dated 26th July, 2022. The appeal was disposed of. The operative portion of the said judgment and order reads as follows:- “6. The Hon’ble Supreme Court in a recent decision in the case of Union of India & Anr. – Vs. – FILCO Trade Centre Pvt. Ltd. & Anr. in Special Leave Petition (C ) No(s).32709-32710/2018 dated 22nd July, 2022 has issued comprehensive direction with regard to availing of transitional credit through TRAN 1 and TRAN 2. The order passed by the Hon’ble Supreme Court is as follows:- 2
“Having heard learned Additional Solicitor General, learned counsel appearing for different States and learned counsel appearing for different private parties and having perused the record, we are of the view that it is just and proper to issue the following directions in these cases:
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 from 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 Rederssal Committee (ITGRC).
GSTN has to ensure that there are no technical glitch during the said time. 3
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. The Special Leave Petitions are disposed of accordingly. Pending applications, if any, also stand disposed of. “
In the light of the above direction issued by the Hon’ble Supreme Court, no orders are required in this appeal. Accordingly, the appeal along with connected application (I.A. No.CAN 2 of 2022) stand disposed of in terms of the order passed by the Hon’ble Supreme Court. 4
Urgent photostat certified copy of this order, if applied for, be furnished to the parties expeditiously upon compliance of all legal formalities.”
In the light of the direction issued by the Hon’ble Supreme Court, no further orders are required to be passed in this appeal. Accordingly, the appeal and the connected application are disposed of in terms of the order passed by the Hon’ble Supreme Court.
Further, we note that the Hon’ble Supreme Court by an order dated 2nd September, 2022 as reported in 2022-VIL-63-SC (Union NAREN/PALLAB(AR.C) 5
Reproduced from the public record of the Calcutta High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.