M/S Bagga Electronics, Faridabad vs. Union Of INDIA And Ors

Facts

The petitioner, M/s Bagga Electronics, Faridabad, filed a writ petition before the Punjab and Haryana High Court. The respondents, Union of India and others, brought to the Court's notice the directions issued by the Supreme Court in SLP (C) No. 32709-32710 of 2018 (Union of India vs. Filco Trade Centre Pvt. Ltd. and another) dated July 22, 2022. These directions mandated GSTN to open a common portal for filing or revising TRAN-1 and TRAN-2 forms for availing transitional credit for two months, from September 1, 2022, to October 31, 2022. The Supreme Court's order also stipulated a 90-day period for concerned officers to verify claims and pass orders, and for allowed credit to reflect in the Electronic Credit Ledger. In light of the respondents' undertaking for meticulous compliance with these directions, the petitioner did not press the instant petition.

Held

The Court noted that the respondents had brought to its attention the directions issued by the Supreme Court in SLP (C) No. 32709-32710 of 2018, titled Union of India and another versus Filco Trade Centre Pvt. Ltd. and another, dated July 22, 2022. These directions included opening a common portal for filing/revising TRAN-1 and TRAN-2 forms for transitional credit from September 1, 2022, to October 31, 2022, followed by a verification process by concerned officers. The respondents assured the Court of meticulous compliance with these Supreme Court directions. Consequently, the counsel for the petitioner stated that they did not press the instant petition. The Court disposed of the petition in light of this submission and the undertaking of compliance.

Key Issues

1. Whether the petitioner is entitled to avail transitional credit through TRAN-1 and TRAN-2 forms, considering the directions issued by the Supreme Court in Union of India vs. Filco Trade Centre Pvt. Ltd. and another. Petitioner's contention: The petitioner did not press the instant petition, implicitly accepting the Supreme Court's directions as a resolution mechanism for availing transitional credit. Respondents' contention: The respondents undertook to meticulously comply with the Supreme Court's directions, which provide a specific window and procedure for taxpayers to file or revise their TRAN-1 and TRAN-2 forms for transitional credit. The respondents indicated that the Goods and Service Tax Network (GSTN) would open a common portal for this purpose from September 1, 2022, to October 31, 2022, and that concerned officers would verify claims thereafter. The respondents relied on the Supreme Court's order dated July 22, 2022.