M/S Mohan Clothing Co. PVT. LTD. vs. Union Of INDIA And Others

Facts

The petitioner, M/s Mohan Clothing Co. Pvt. Ltd., filed a writ petition before the Punjab and Haryana High Court. The respondents, Union of India and others, brought to the court's 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 mandated the opening of a common portal by GSTN 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 be reflected in the Electronic Credit Ledger. In light of these directions and the respondents' undertaking for meticulous compliance, the petitioner chose not to press the instant petition.

Held

The Court did not decide the substantive issues of the petitioner's entitlement to transitional credit on merits. Instead, the Court disposed of the writ petition based on the directions issued by the Supreme Court in SLP (C) No.32709-32710 of 2018. The Supreme Court had directed GSTN to open a common portal for filing/revising TRAN-1 and TRAN-2 forms for a period of two months (September 1, 2022, to October 31, 2022). The Supreme Court further directed that aggrieved registered assessees could file or revise their forms irrespective of whether they had filed a writ petition or if their case had been decided by the ITGRC. Concerned officers were given 90 days thereafter to verify claims and pass orders. The ratio decidendi is that when a higher court provides a specific mechanism to address grievances, parties should avail that mechanism, and the High Court may dispose of the petition accordingly, especially when the petitioner does not press the petition in light of such directions. The operative direction was to dispose of the writ petition in light of the Supreme Court's order.

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 and another versus Filco Trade Centre Pvt. Ltd. and another (SLP (C) No.32709-32710 of 2018) dated 22.07.2022. The petitioner's contention was not explicitly stated as they did not press the petition. The respondents' contention was that the Supreme Court's directions in the aforementioned case provided a mechanism for aggrieved registered assessees to file or revise their TRAN-1 and TRAN-2 forms for availing transitional credit, and that they would ensure meticulous compliance with these directions. The respondents relied on the Supreme Court's order, which directed GSTN to open a common portal for filing these forms and for concerned officers to verify claims and pass appropriate orders.