HC Raps revenue for failing to act on a transitional-credit claim despite directions

Last updated: 25 November 2021

Court :
Gujarat HC

Brief :
In M/s Siddharth Enterprises through Anr. v. The Nodal Officer [TS-625-HC(GUJ)-2021-GST dated October 14, 2021] Hon'ble Gujarat High Court observed that the direction of this Court to allow filing of declaration in form GST TRAN-1 and GST TRAN-2 by M/s Siddharth Enterprises ("the Petitioner") so as to enable them to claim transitional credit of the eligible duties has not been followed by the Nodal Officer and thus directed him to appear before the court.

Citation :
TS-625-HC(GUJ)-2021-GST dated October 14, 2021

In M/s Siddharth Enterprises through Anr. v. The Nodal Officer [TS-625-HC(GUJ)-2021-GST dated October 14, 2021] Hon'ble Gujarat High Court observed that the direction of this Court to allow filing of declaration in form GST TRAN-1 and GST TRAN-2 by M/s Siddharth Enterprises ("the Petitioner") so as to enable them to claim transitional credit of the eligible duties has not been followed by the Nodal Officer and thus directed him to appear before the court.

A common judgment was delivered by the Hon'ble Gujarat High Court on September 6, 2019 in which all the four writ applications were allowed and Department was directed to permit the Petitioner to allow filing of declaration in form GST TRAN-1 and GST TRAN-2 so as to enable him to claim transitional credit in terms of Section 140(3) of the Central Goods and Services Tax Act, 2017 ("the CGST Act").

Observed that, after passing the above-mentioned judgment four review applications were filed by the Nodal Officer which were rejected by this Court vide order dated February 14, 2020.

Further, observed that, the concerned authority did not abide by the directions given by this Court and even after two years the order of the Court has been ignored by the Department.

Pointed that, all that is expected by the Department is to open the portal and allow the Petitioner to file declaration in Form GST TRAN-1 and GST TRAN-2 so as to enable them to claim the transitional credit of the eligible duties in respect of the inputs held in stock on the appointed day in terms of Section 140(3) of the CGST Act.

Therefore, due to non-compliance of the order, directed the Nodal Officer to present before the Court.