Supreme Court upholds Delhi High Court’s decision allowing carry forward of transitional credit through Form TRAN-1

by | Jan 11, 2021 | Insight | 0 comments

In a welcome step for taxpayers, the Supreme Court in the case of Nodal Officer Delhi State GST Department v. Aagman Services Private Limited & Ors. 2021-VIL-01-SC has dismissed SLP filed by department and upheld decision of Delhi High Court.

 Brief Facts:

  • The Petitioner filed Form TRAN-1 electronically on August 23, 2017 but error got displayed on GST portal. 
  • The High Court observed that the petitioner could not file Form TRAN-1 within time limit for reasons beyond its control due to technical glitches as GST portal continuously reflected message ‘TRAN-1 processed with error’. Accordingly, the Court decided issue in favor of the petitioner and directed department to either enable the petitioner to file Form TRAN-1 electronically or accept the same manually. 
  • The Department filed an SLP before the Supreme Court against the above decision. 


In a welcome move, the Supreme Court rejected the SLP filed by the department on the ground of delay as well as on merits, thereby upholding the High Court ruling. 

NITYA Comments: 

Transitioning of pre-GST credits in GST regime has been a burning issue with several High Courts holding divergent views. Though Supreme Court did not provide any detailed reasoning in this ruling, this strengthens pending cases of large number of taxpayers who could not transition pre-GST credits due to inadvertent errors or technical glitches faced on GST portal. Even though the Supreme Court rejected department’s SLP in this case, it has admitted department’s SLP in some cases which are pending final decision. 

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