HC allowed petitioner to file TRAN-1 belatedly to claim CENVAT credit which was granted after winning appeal in 2018-19

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  • Last Updated on 11 August, 2021

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TRAN-1 Form CENVAT Credit

Case details: Jahanpanah Club v. Union of India - [2021] 129 taxmann.com 10 (Delhi)

Judiciary and Counsel Details

    • Manmohan and Sanjeev Narula, JJ.
    • Sumit K. Batra and Manish Khurana, Advs. for the Petitioner. 
    • Amit Bansal, Sr. Standing Counsel and Ms. Vipasha Mishra for the Respondent.

Facts of the Case

The petitioner was issued show cause notices raising service tax demands on their operations/services. Due to lack of knowledge, CENVAT was not availed for the years 2012-13 to 2017-18 and the Adjudicating Authority permitted the petitioner to avail ITC for 2015-16 to 2017-18 only and rejected claim for previous years. However, it approached this Court and filed writ petition with contention that without order, on the merits mere rejection cannot be appealed. The Court directed to complete the proceedings and pass a reasoned order. The detailed order was passed rejecting the claim and it filed appeal.

On filing appeal against the order, it requested the CESTAT to allow adjustment against the CENVAT credit for payment of pre-deposit. But an objection was raised that the CENVAT credit was not carried forward from service tax to GST regime through the GST TRAN-1 form and since TRAN-1 Form was not filed, the entire amount of CENVAT credit will become redundant. It again filed this writ petition before the Court.

High Court Held

The Honorable High Court observed that the CENVAT credit was granted pursuant to the order passed by the Commissioner dated 5th October, 2018 and the order dated 8th May, 2019 passed by the Commissioner (Appeals), which is after the appointed date of July, 2017 when the GST regime came into force. The petitioner could not file Form TRAN-1 as the last date of filing the claim for credit expired on 27th December, 2017. Since, the delay in filing TRAN-1 Form could not be attributed to petitioner, the petitioner could not lose its vested right over accumulated CENVAT credit and, therefore, the department was directed to either open portal so as to enable petitioner to file TRAN-1 Form electronically or to accept a manually filed TRAN-1 Form.

Case Review

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