M/S Nakodar Cooperative Sugar Mills Limited vs. Union Of INDIA And Others

Facts

The petitioner, M/s The Nakodar Cooperative Sugar Mills Limited, Jalandhar, filed a writ petition before the Punjab and Haryana High Court. The respondents, Union of India and others, brought to the Court's notice 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 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 be reflected in the Electronic Credit Ledger. In light of these Supreme Court directions and the respondents' undertaking for meticulous compliance, the petitioner did not press their petition.

Held

The Court noted that the Supreme Court, in its order dated July 22, 2022, in SLP (C) No.32709-32710 of 2018, had directed GSTN to open a common portal for filing/revising TRAN-1 and TRAN-2 forms for two months (September 1, 2022, to October 31, 2022). The Supreme Court's directions also provided for verification of claims and passing of orders on merits within 90 days thereafter. In light of the respondents' assurance of meticulous compliance with these directions, the petitioner chose not to press their writ petition. Consequently, the Court disposed of the petition, giving effect to the Supreme Court's overarching directions that provided a mechanism for aggrieved assessees to claim transitional credit. The ratio decidendi is that when a higher court provides a specific mechanism to address grievances, a High Court may dispose of a pending writ petition on that basis, especially when the petitioner does not press the petition.

Key Issues

1. Whether the petitioner is entitled to avail transitional credit through TRAN-1 and TRAN-2 forms, considering the Supreme Court's directions in SLP (C) No.32709-32710 of 2018. Petitioner's Contention: The petitioner, by not pressing the petition, implicitly accepted the opportunity provided by the Supreme Court's directions to file or revise their transitional credit forms. Respondents' Contention: The respondents undertook to comply meticulously with the Supreme Court's directions, which included opening a common portal for filing/revising TRAN-1 and TRAN-2 forms and processing such claims on merits. They relied on the Supreme Court's order dated July 22, 2022, in SLP (C) No.32709-32710 of 2018.