P.R. Rolling Mills Private Limited vs. Deputy Commissioner (State Tax)

Held

The Court held that the petitioner is entitled to file Form GST TRAN-1 within the extended period provided by the Supreme Court's directions and the subsequent circular. The Court reasoned that the Supreme Court's directive in Filco Trade Centre Pvt. Ltd. & Anr. aimed to provide an opportunity to registered assessees to file or revise TRAN-1 and TRAN-2 forms, irrespective of prior writ petitions or decisions by the ITGRC. The subsequent circular extending the portal opening period until November 30, 2022, further solidified this entitlement. Therefore, the petitioner, as a registered assessee, can avail this extended period to file Form TRAN-1 afresh. The Court directed the respondents to provide the facility for the petitioner to file Form TRAN-1 within this extended period and not refuse to accept it on any technical ground, provided other necessary conditions are fulfilled. The orders dated January 31, 2020, and October 4, 2021, which had previously refused the benefit, were quashed. The ratio decidendi is that the benefit of the extended period for filing transitional credit forms, as directed by the Supreme Court and clarified by circulars, must be extended to eligible assessees, overriding previous refusals based on technicalities or expired deadlines.

Facts

The petitioner, P.R. Rolling Mills Private Limited, filed a writ petition seeking a direction to the Deputy Commissioner (State Tax), Anti Evasion Tax, Jaipur, to accept its declaration in Form GST TRAN-1. This form is intended to claim transitional credit of eligible duties on inputs under Section 140 of the Rajasthan Goods & Service Tax Act. The petitioner also sought to quash orders dated January 31, 2020, and October 4, 2021, which refused the benefit of submitting Form GST TRAN-1. The petitioner contended that the TRAN-1 form was not accepted due to technical glitches and submission of C-Forms. The Supreme Court, in Union of India & Anr. Vs. Filco Trade Centre Pvt. Ltd. & Anr., directed GSTN to open the common portal for filing TRAN-1 and TRAN-2 for two months (September 1, 2022, to October 31, 2022). A subsequent circular extended this period to November 30, 2022.

Key Issues

1. Whether the petitioner is entitled to file Form GST TRAN-1 and claim transitional credit, notwithstanding the previous rejection of their submission and the orders dated January 31, 2020, and October 4, 2021, in light of the Supreme Court's directions in Union of India & Anr. Vs. Filco Trade Centre Pvt. Ltd. & Anr. and the subsequent circular extending the filing period? (Question of law and mixed fact and law, turning on Section 140 of the Rajasthan Goods & Service Tax Act and the Supreme Court's directions). Petitioner's Contention: The petitioner argued that they had attempted to file Form GST TRAN-1, but it was not accepted due to technical glitches. They relied on the Supreme Court's decision in Filco Trade Centre Pvt. Ltd. & Anr., which directed the opening of the GST portal for filing TRAN-1 and TRAN-2, and the subsequent circular extending this period. They asserted their right to avail this extended period to file the form. Respondent's Contention: The judgment records no specific arguments from the respondent. However, the respondent's prior orders refusing the benefit of submission of Form GST TRAN-1 were under challenge.