Judicial Discretion Prevails: 643-Day Delay Condoned, GST Credit Appeal Allowed with Rectification Pathway

HC allowed condonation of 643-day delay in filing appeal, despite finding reasons unconvincing. The court referenced a SC order from July 2022. In a related GST transitional credit appeal, the court aligned with recent SC directions permitting reassessment of TRAN-1 and TRAN-2 forms, enabling taxpayers to rectify and file credit claims through a common portal.

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Issues:
1. Application for condonation of delay in filing the appeal.
2. Appeal by the revenue challenging an order related to availing transitional credit under GST.

Analysis:
1. The judgment addressed an application (I.A. CAN 1 of 2022) seeking condonation of a delay of 643 days in filing the appeal. The court, comprising Hon'ble Mr. Justice T. S. Sivagnanam and Hon'ble Mr. Justice Bivas Pattanayak, considered the reasons provided in the affidavit supporting the application. Despite finding the reasons not very convincing, the court exercised discretion based on a reasoned order passed by the Hon'ble Supreme Court on 22nd July, 2022, and consequently condoned the delay, allowing the application.

2. The second issue involved an appeal (M.A.T. No.16 of 2022) by the revenue challenging an order related to availing transitional credit under GST. The appeal was directed against an order passed by the Learned Single Bench on 4th March, 2020. The judgment highlighted a recent decision by the Hon'ble Supreme Court in a specific case concerning transitional credit through forms TRAN-1 and TRAN-2. The Supreme Court issued comprehensive directions, including the opening of a common portal by GSTN for filing the relevant forms, allowing registered assessees to file or revise forms, ensuring no technical glitches, providing officers 90 days to verify claims, reflecting allowed transitional credit in the Electronic Credit Ledger, and possible issuance of guidelines by the GST Council. In light of these directions, the appeal and connected application were disposed of accordingly, aligning with the Supreme Court's order.

This detailed analysis of the judgment from the Calcutta High Court provides insights into the court's considerations regarding the delay in filing the appeal and the implications of the Supreme Court's directions on availing transitional credit under GST.

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