M/S Macro Furnaces Faridabad vs. Union Of INDIA And Ors

Facts

The petitioner, M/s Macro Furnaces, Faridabad, filed a writ petition before the Punjab and Haryana High Court. The matter was listed for preliminary hearing and directed to be listed after the decision in SLP (C) Nos. 7425-7428 of 2020. The Supreme Court, on July 22, 2022, passed directions concerning the filing and processing of transitional credit through TRAN-1 and TRAN-2 forms. These directions included opening a common portal for two months, allowing aggrieved registered assessees to file or revise forms irrespective of prior writ petitions or ITGRC decisions, and directing GSTN to prevent technical glitches. Concerned officers were given 90 days to verify claims and pass orders, after which allowed credit would reflect in the Electronic Credit Ledger. Following these Supreme Court directions, the counsel for the petitioner stated that the instant petition was not pressed.

Held

The High Court held that in light of the Supreme Court's directions in SLP (C) Nos. 7425-7428 of 2020, the petitioner did not press the instant writ petition. The Supreme Court had directed the Goods and Services Tax Network (GSTN) to open a common portal for filing or revising TRAN-1 and TRAN-2 forms for two months (September 1, 2022, to October 31, 2022). This was to allow any aggrieved registered assessee to file or revise their forms, irrespective of whether they had filed a writ petition or if their case was decided by the Information Technology Grievance Redressal Committee (ITGRC). The Supreme Court also mandated GSTN to ensure no technical glitches and gave concerned officers 90 days to verify claims and pass orders. The ratio decidendi is that when a higher court provides a comprehensive mechanism to address the grievances raised in a pending petition, the petitioner may choose not to press their petition before the lower court, as the relief is now available through the prescribed procedure. The operative direction was to dispose of the petition in view 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 Supreme Court's directions in SLP (C) Nos. 7425-7428 of 2020? The petitioner's argument was not explicitly recorded as they did not press the petition. However, the Supreme Court's order addressed the issue of availing transitional credit through TRAN-1 and TRAN-2 forms. The respondents, Union of India and others, and the State of Haryana, were represented. The Supreme Court's order, which the High Court was to consider, provided a mechanism for assessees to file or revise their transitional credit claims. The court's decision was based on the Supreme Court's directions, which aimed to provide relief to aggrieved registered assessees.