Landmark Ruling: Taxpayer Wins Right to Revise Returns via Common Portal Under Transitional Credit Provisions

HC allowed appeal regarding TRAN 1 and TRAN 2 transitional credit. Following SC's prior directions, appellant granted liberty to revise returns through common portal. HC clarified SC's order supersedes previous judicial observations, enabling appellant to file revised returns with departmental verification.

---

---

Issues:
Appeal against order passed by Single Bench dated 1st July, 2022 regarding availment of transitional credit through TRAN 1 and TRAN 2.

Analysis:
The High Court heard an intra-Court appeal against an order passed by the Single Bench. The appellant raised various grounds, and the Government Counsel presented several contentions. The High Court referred to a decision by the Hon'ble Supreme Court in a specific case, where comprehensive directions were issued regarding the availment of transitional credit through TRAN 1 and TRAN 2. The Supreme Court directed the GSTN to open a common portal for filing the required forms for availing Transitional Credit for a specific period. It also provided a timeframe for verification of claims and reflected the allowed Transitional credit in the Electronic Credit Ledger.

The High Court emphasized that based on the Supreme Court's directions, the appellant could revise its TRAN-1 and TRAN-2 returns, with verification to be done by the department. The appellant's advocate expressed concerns about certain observations made by the Single Bench, potentially hindering the appellant's benefit. However, the High Court clarified that the Supreme Court's order supersedes all previous directions issued by various High Courts, rendering the Single Bench's observations irrelevant.

Consequently, the High Court disposed of the appeal and the connected application in accordance with the Supreme Court's order. The appellant was granted liberty to file a revised return following the Supreme Court's directions. The High Court also directed the prompt issuance of a certified copy of the order to the concerned parties upon completion of legal formalities.

---