M/S Golden Paints And Chemical Faridabad vs. Union Of INDIA And Others

Facts

The petitioner, M/s Golden Paints & Chemical, Fardiabad, filed a writ petition before the Punjab & Haryana High Court. The matter was listed for preliminary hearing on November 26, 2020, and was directed to be listed after the decision in SLP (C) Nos. 7425-7428 of 2020. On July 22, 2022, the Supreme Court passed specific directions regarding the filing of forms for availing transitional credit through TRAN-1 and TRAN-2. These directions mandated the Goods and Service Tax Network (GSTN) to open a common portal for two months, from September 1, 2022, to October 31, 2022, for aggrieved registered assessees to file or revise their forms. The Supreme Court also directed concerned officers to verify claims and pass orders within 90 days thereafter, and for the allowed transitional credit to be reflected in the Electronic Credit Ledger. Following these Supreme Court directions, the counsel for the petitioner stated that they did not press the instant petition.

Held

The High Court noted that the Supreme Court, in SLP (C) Nos. 7425-7428 of 2020, had issued specific directions on July 22, 2022. These directions mandated the GSTN to open a common portal for filing or revising TRAN-1 and TRAN-2 forms for availing transitional credit for a period of two months, from 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 was decided by the ITGRC. The concerned officers were given 90 days thereafter to verify the claims and pass appropriate orders on merits after granting an opportunity to the parties. The allowed transitional credit was to be reflected in the Electronic Credit Ledger. The High Court observed that these directions were to be meticulously complied with by the authorities. In light of these Supreme Court directions, the counsel for the petitioner stated that they did not press the instant petition. Consequently, the writ petition was disposed of.

Key Issues

1. Whether the petitioner is entitled to file or revise their TRAN-1 and TRAN-2 forms for availing transitional credit, considering the Supreme Court's directions in SLP (C) Nos. 7425-7428 of 2020? Petitioner's Contention: The petitioner, through their counsel, did not press the petition, implicitly accepting the Supreme Court's directions as a resolution or a path forward for their claim. Respondents' Contention: The respondents, Union of India & others, and the State of Haryana, were represented. The Supreme Court's order, which was brought to the High Court's notice, provided a mechanism for taxpayers to avail transitional credit. The respondents would have been bound by these directions. No specific argument was recorded for the respondents in the High Court's order, as the petitioner withdrew their plea.