M/S Comfort Cotton Tex PVT. LTD. vs. Union Of INDIA And Ors

Facts

The petitioner, M/s Comfort Cotton Tex Pvt. Ltd., 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. The parties brought to the court's notice that the Supreme Court had passed specific directions on July 22, 2022, in the aforementioned SLP matters. These directions pertained to the opening of a common portal by the Goods and Services Tax Network (GSTN) for filing or revising forms for availing Transitional Credit through TRAN-1 and TRAN-2. The Supreme Court's order aimed to address the grievances of aggrieved registered assessees concerning transitional credit.

Held

The Court noted that the Supreme Court, in its order dated July 22, 2022, in SLP (C) Nos. 7425-7428 of 2020, had issued specific directions. These directions mandated 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 further directed that any aggrieved registered assessee could file or revise their forms, irrespective of prior writ petitions or decisions by the ITGRC. Concerned officers were given 90 days thereafter to verify claims and pass orders. The 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 the instant petition was not being pressed. Consequently, the High Court disposed of the petition.

Key Issues

1. Whether the Supreme Court's directions in SLP (C) Nos. 7425-7428 of 2020, issued on July 22, 2022, provide a comprehensive mechanism for assessees to claim transitional credit, thereby rendering the present writ petition infructuous? (Question of law) Petitioner's contention: The petitioner, through its counsel, acknowledged the Supreme Court's directions and did not press the instant petition, implying acceptance of the mechanism provided by the Supreme Court. Respondents' contention: The respondents, Union of India and others, through their respective counsel, were present and their stance was implicitly represented by the Supreme Court's order which directed compliance by the concerned authorities.