Bombay High Court
Unichem Laboratories Limited vs Union Of India And 4 Ors on 23 August, 2022
Bench: K.R. Sriram, Gauri Godse
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varsha
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ORDINARY ORIGINAL CIVIL JURISDICTION
WRIT PETITION NO. 109 of 2020
Unichem Laboratories Limited .....Petitioner
V/s.
Union of India and 4 Ors .....Respondents
WITH
WRIT PETITION NO. 1479 OF 2019
Castrol India Limited and Anr .....Petitioners
V/s.
Union of India and 4 Ors .....Respondents
WITH
WRIT PETITION NO. 2786 OF 2021
Nivea India Private Limited .....Petitioner
V/s.
Union of India through the Joint Secretary
(Revenue) and Ors .....Respondents
WITH
WRIT PETITION NO. 1646 OF 2022
Pfizer Limited .....Petitioner
V/s.
Union of India through the Joint Secretary
(Revenue) and Ors .....Respondents
WITH
WRIT PETITION NO. 262 OF 2019
Siemens Healthcare Pvt Ltd .....Petitioner
V/s.
Union of India and 5 Ors .....Respondents
1/6
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Mr. Jitendra Motwani a/w Mr. Nishant Shah, Ms. Virangana Wadhawan and Mr
Neeraj Hande i/b Economic Laws Practice for Petitioner in WP/109/2020 and
WP/2786/2021
Mr Rohan P Shah a/w Mr Udayan Choksi and Mr Sri Sabari Rajan i/b Vox Law
for Petitioners in WP/1479/2019.
Mr Vikram Nankani, Senior Advocate a/w Mr Jitendra Motwani and Mr Nishant
Shah i/b Economic Laws Practice for Petitioner in WP/262/2019.
Mr Prasad Paranjape a/w Mr Sanjeev Nair i/b Lumiere Law Partners for
Petitioner in WP/1646/2022.
Mr Pradeep S. Jetly, Senior Advocate a/w Mr. Dhananjay B. Deshmukh for
Respondent Nos. 1, 4 & 5 in WP/109/2020.
Ms. P.S. Cardozo a/w Ms. Ruju R. Thakker for Respondent Nos. 2 to 5 in
WP/1479/2019.
Mr. Padmakar Patkar a/w Mr. Karan Adik for Respondent Nos. 2 to 4 in
WP/2786/2021.
Mr. Jitendra B. Mishra a/w Ms. Maya Majumdar for Respondent Nos. 1, 2, 3 and
7 in WP/262/2019.
Mr Jitendra B. Mishra and Mr. Dhananjay B Deshmukh for Respondent Nos. 1,
2,4 and 7 in WP/1646/2022.
Ms. Jyoti Chavan, AGP for Respondent-State in WP/2786/2021 and
WP/1646/2022
Mr. Himanshu Takke, AGP for Respondents- State in WP/262/2019.
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CORAM : K.R.SHRIRAM &
GAURI GODSE, JJ.
DATE : 23rd AUGUST, 2022.
P.C.
1. The present batch of Petitions have been filed in relation to the procedural
difficulties / objections raised with regard to distribution and/or utilisation
and/or eligibility of Input Service Distributor (ISD) credit of Service
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Tax/excise duty under Section 140 of the CGST Act 2017.
2. The common objection of Respondent in this batch of Petitions is that ISD
Credit cannot be transitioned directly into the Electronic Credit Ledger
(ECL) maintained under the GST Regime. In view of the provisions of
CGST Act, the ISD credit ought to have been distributed by the said ISD to
its different units/offices before 1.07.2017 and thereafter the transferee
unit/offices ought to have filed TRAN-1 to transition the said credit
distributed to it by ISD, into their respective ECL.
3. It is Petitioners' case that Petitioners attempted distribution of credit
transitioned/reporting of the distributed credit by the ISD registration to
their units/offices. However, they were not able to distribute/recognise and
report the distribution, as there were procedural and functional difficulties
in relation to the GST forms and portal.
4. The Hon'ble Apex Court, to aid the assessees to overcome the
procedural/technical hurdles, by an order dated 22 nd July, 2022 in
Petition(s) for Special Leave to Appeal(C) No(s).32709-32710 of 2018 and
other matters in Union of India & Another Vs Filco Trade Centre Pvt. Ltd.
& Another1 directed the GST Network to open the common portal to
1 2022 (7) TMI 1232
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file/rectify TRAN-1 and TRAN-2 for a period of two months, i.e., with
effect from 1st September, 2022 to 31st October, 2022 to enable the different
private parties to avail Transitional Credit. The order reads as under :-
"O R D E R
Permission to file Special Leave Petition(s) is allowed.
Delay condoned.
Having heard learned Additional Solicitor General, learned counsel
appearing for different States and learned counsel appearing for
different private parties and having perused the record, we are of the
view that it is just and proper to issue the following directions in these
cases :
1. Goods and Service Tax Network (GSTN) is directed to open
common portal for filing concerned forms for availing Transitional
Credit through TRAN-1 and TRAN-2 for two months i.e. w.e.f.
01.09.2022 to 31.10.2022.
2. Considering the judgments of the High Courts on the then
prevailing peculiar circumstances, any aggrieved registered assessee is
directed to file the relevant form or revise the already filed form
irrespective of whether the taxpayer has filed writ petition before the
High Court or whether the case of the taxpayer has been decided by
Information Technology Grievance Redressal Committee (ITGRC).
3. GSTN has to ensure that there are no technical glitch during the
said time.
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4. The concerned officers are given 90 days thereafter to verify the
veracity of the claim/transitional credit and pass appropriate orders
thereon on merits after granting appropriate reasonable opportunity to
the parties concerned.
5. Thereafter, the allowed Transitional credit is to be reflected in the
Electronic Credit Ledger.
6. If required GST Council may also issue appropriate guidelines to
the field formations in scrutinizing the claims.
The Special Leave Petitions are disposed of accordingly.
Pending applications, if any, also stand disposed of."
5. We also intend to adopt the same approach. In the circumstances, directions
given below would meet the ends of justice:
(a) All Petitioners, through their respective units/offices registered
under CGST Act and/or State Acts, as the case may be, can avail
this window and file GST TRAN-1/revised GST TRAN-1 at the
units/offices between 01.09.2022 to 31.10.2022 in terms of the
Hon'ble Supreme Court's order in Filco Trade (Supra)
(b) The GST TRAN-1/ revised GST TRAN-1 filed by the units/offices
will be basis the manual ISD invoices issued / to be issued by ISD of
Petitioner subject to aggregate credit not exceeding the ISD credit
available with the ISD Petitioner
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(c) The Central Board of Indirect Taxes and Customs (CBIC), keeping
in mind the problems faced by various parties, to issue a
clarification, after due deliberation, in relation to the distribution /
reporting of ISD credit preferably within 21 days from the date this
is Order is uploaded, keeping in mind the approach adopted by the
Hon'ble Supreme Court of India in Filco Trade (Supra).
Petitioners, may, if so advised, approach the CBIC in this regard.
(d) The concerned officers are given 90 days thereafter to verify the
veracity of the claim/ Transitional Credit and pass appropriate
orders thereon on merits after granting appropriate reasonable
opportunity to the parties concerned.
6. With the consent of the Counsels, Petitions are accordingly disposed.
[GAURI GODSE, J.] [K.R.SHRIRAM, J.]
