Tara Machines And Tech Services PVT. LTD. vs. Commissioner Of GST

Held

The High Court disposed of the writ petition in line with the directions issued by the Supreme Court in its judgment dated July 22, 2022, in the case of Union of India vs. Filco Trade Centre Pvt. Ltd. The Court held that the directions contained in the Supreme Court's judgment would apply mutatis mutandis to the present case. The substantive prayer of the petitioner was to allow the filing of Form GST TRAN-1 to claim input tax credit amounting to Rs. 39,20,061. The Court's decision was based on the understanding that the Supreme Court's ruling provided the framework for resolving such claims. The ratio decidendi is that High Courts should follow the Supreme Court's pronouncements on similar matters, particularly concerning the eligibility and procedure for claiming transitional input tax credit under GST. The operative direction was the disposal of the writ petition in terms of the Supreme Court's judgment.

Facts

The petitioner, Tara Machines and Tech Services Pvt. Ltd., filed a writ petition seeking a mandamus to allow the filing of a declaration in Form GST TRAN-1. This was to enable the petitioner to claim input tax credit amounting to Rs. 39,20,061. The respondent, the Commissioner of GST, appeared through counsel. The High Court was informed that the Supreme Court had passed a judgment on July 22, 2022, in a batch of matters, including Union of India vs. Filco Trade Centre Pvt. Ltd. The petitioner stated they would be satisfied if directions were issued in line with this Supreme Court judgment. Consequently, the High Court disposed of the writ petition.

Key Issues

1. Whether the petitioner is entitled to a direction in the nature of mandamus to allow filing of declaration in Form GST TRAN-1 to claim input tax credit of Rs. 39,20,061? Petitioner's contention: The petitioner argued that they are entitled to the relief sought, specifically the ability to file Form GST TRAN-1 to claim their input tax credit. They indicated their satisfaction with directions mirroring the Supreme Court's judgment in Union of India vs. Filco Trade Centre Pvt. Ltd. Respondent's contention: The respondent (revenue) submitted that the writ petition could be disposed of in terms of the directions issued by the Supreme Court in the aforementioned judgment. No specific arguments were recorded against the petitioner's claim beyond agreeing to follow the Supreme Court's directive.