A long-awaited judgment passed by the Hon’ble Supreme Court on 22.07.2022 in the matter of Union of India & Anr.Vs. Filco Trade Centre Pvt. Ltd. & Anr. in Petition (s) Special Leave to Appeal (C) No.(s) – 32709 – 32710/2018, disposing of batch of around 400 appeals.  The Hon’ble Court through this order, directed GSTN (Goods and Service Tax Network) to open the Common portal from 01.09.2022 to 31.10.2022 to allow the assessees for filing concerned forms for availing Transitional Credit through TRAN-1 & TRAN-2.

That large number of assessees while carrying forward the amount of Input Tax Credit (CENVAT Credit in the erstwhile regime) faced various issues and ultimately could not transfer the amount of credit lying unutilized on 30.06.2017, to the GST regime.  As per Section 140 of the CGST Act, 2017, the taxable person was allowed to carry forward the credit of eligible duties (provided other conditions), however many assessees could not carry it forward due to technical glitches at the portal, or in many cases it accrued after the cut-off date of filing TRAN-1 i.e., 27.12.2017 giving rise to the peculiar situations, or it could not be carried forward due to any mistake committed by the assessee in filing the concerned forms or not following the procedures.

That the CENVAT Credit being vested right of the assessee, the issue has now been taken up by the Hon’ble Supreme court to give relief to the large number of assessees, by providing the opportunity to file or revise TRAN -1 & TRAN – 2.

To read more about Tran-1 & Tran-2– Click here

 

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