M/S Basant Knit Fab vs. UOI And Ors.

Facts

The petitioner, M/s Basant Knit Fab, filed a writ petition before the Punjab & Haryana High Court. The respondents, Union of India and others, brought to the Court's notice an order passed by the Hon'ble 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 22.07.2022. This Supreme Court order directed the Goods and Service Tax Network (GSTN) to open a common portal for filing or revising forms for availing Transitional Credit through TRAN-1 and TRAN-2 for a period of two months, from 01.09.2022 to 31.10.2022. The Supreme Court also laid down a procedure for verification and passing of orders on merits by the concerned officers thereafter. In light of this Supreme Court direction, the counsel for the petitioner did not press the instant writ petition.

Held

The Court noted that the Hon'ble Supreme Court, in its order dated 22.07.2022 in SLP (C) No. 32709-32710 of 2018, had directed 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 (01.09.2022 to 31.10.2022). The Supreme Court further directed that aggrieved registered assessees could file or revise their forms irrespective of prior writ petitions or decisions by the ITGRC. The concerned officers were given 90 days thereafter to verify claims and pass orders on merits after granting an opportunity to the parties. The allowed transitional credit would then be reflected in the Electronic Credit Ledger. In view of the respondents' submission of meticulous compliance with these directions, the petitioner did not press the writ petition. The Court disposed of the petition accordingly.

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 Hon'ble Supreme Court in Union of India and another versus Filco Trade Centre Pvt. Ltd. and another. The petitioner's side argued that they were seeking relief related to transitional credit. The respondents, Union of India and others, brought to the Court's attention the Supreme Court's order dated 22.07.2022, which provided a specific mechanism for taxpayers to file or revise their TRAN-1 and TRAN-2 forms for availing transitional credit. The respondents indicated their intention to comply meticulously with these directions. The petitioner, in light of the Supreme Court's order and the respondents' undertaking, did not press their petition.