Landmark Ruling: GST TRAN-I Form Credit Claims Allowed with Verification Process for Taxpayers Under Specified Conditions

HC disposed of petitions seeking permission to file GST TRAN-I form for claiming carried forward input tax credit. Following SC's judgment in Filco Trade Centre case, the court directed resolution through common portal, allowing verification of transitional credit claims by tax authorities. Petitioners' request to treat filing deadline as directory was addressed within SC's earlier guidelines.

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Issues:
Petitioners seeking permission to file 'Form GST Tran-I' for claiming carried forward eligible duties of CENVAT/Input Tax Credit. Interpretation of Section 140 of the Goods and Services Tax Act, 2017 read with Rule 117 of the Central Goods and Services Tax Rules, 2017. Whether the due date to claim transitional credit is procedural or mandatory. Application of Supreme Court judgment in Union of India vs. Filco Trade Centre Pvt. Ltd regarding Transitional Credit through TRAN-1 and TRAN-2.

Analysis:
The petitioners in a group of petitions requested the respondent authorities to allow them to file 'Form GST Tran-I' to claim the carried forward eligible duties of CENVAT/Input Tax Credit concerning Service Tax, Central Excise, and Gujarat Value Added Tax on the appointed day of 30.6.2017 under Section 140 of the Goods and Services Tax Act, 2017, and Rule 117 of the Central Goods and Services Tax Rules, 2017. They argued that the due date for claiming transitional credit should be considered directory and not mandatory, seeking permission to file GST Tran-I electronically or manually for claiming CENVAT/Input Credit.

The transition from the Value Added Tax/Service Tax/Central Excise regime to the Goods and Service Tax regime allowed for carrying forward the credit of eligible taxes and duties paid on input services not availed as input tax credit on the appointed day of 1.7.2017 when the CGST Act came into effect. The filing of TRAN-1 was required under the CGST Tax Rules before 30.9.2017. The issue raised in these petitions was similar to the one addressed by the Apex Court in the case of Union of India vs. Filco Trade Centre Pvt. Ltd, where the Supreme Court issued specific directions regarding Transitional Credit through TRAN-1 and TRAN-2, including the opening of a common portal for filing forms, verification of claims by concerned officers, and reflection of allowed Transitional credit in the Electronic Credit Ledger.

In light of the Supreme Court's directions in the mentioned case, the High Court disposed of all the petitions, stating that the Supreme Court's decision would govern the rights of the parties involved. The petitions were consequently disposed of in accordance with the terms outlined in the Supreme Court judgment, with notices discharged and interim orders vacated.

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