CBIC vide F. No. CBEC-20/10/11/2019 – GST/1001/ dated June 26, 2020, that a number of writ petitions / PILS / appeals have been or are being filed in the various High Court(s) by taxpayers who were not able to carry forward or transition the accumulated CENVAT credit under the erstwhile regime to GST regime due to non-filing of TRAN-1/ TRAN-2 within due date due to technical glitches or various other reasons. Correspondences, in this regard, are received from the field formations / jurisdictional Commissionerates seeking comments/inputs on the policy issues or questions of law challenged in the said Writ petitions for filing counter affidavit in the matter. In all these cases, the petitioners, time and again, challenge the transitional provisions of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as CGST Act, 2017) and rules made thereunder.
The issues raised in most of such writ petitions/ PILs/ Appeals are similar in nature. However, inputs/ comments on the policy issues/ questions of law have to be provided to the field formations by the Policy Wing separately in each such reference from the filed formations. This not only requires duplication of efforts of the Policy Wing but also may result in undue delay in filing appropriate reply/ counter affidavit in the Courts by the field formations.
For ease of reference and in order to ensure that no such separate references are required to be made by the field formations to Policy Wing of CBIC seeking inputs/ comments on policy matters in the writ petitions / PILS / appeals filed on issues pertaining to transitional credit, including issues related to non-filing of TRAN-1/ TRAN-2 by due date and other related issues, a list of policy issues/questions of law, that are often challenged in the said writ petitions, has been compiled along with the comments of the Policy Wing thereon and is enclosed as Annexure – A.
It is requested that the field formations; under your jurisdiction may be advised to refer to the comments of the Policy Wing given in the said Annexure while filing any reply/counter-affidavit against the writ petitions / PILS / appeals related to transitional provisions. No separate reference may be made to the Policy Wing in respect of the issues covered in the said Annexure. Only if any fresh policy issue/ question of law is raised in any writ petitions / PILS / appeals which is not covered under Annexure-A enclosed herewith, the matter should be referred to the Policy Wing giving details of the specific policy issue/ question of law on which comments/ inputs of the Policy Wing are sought.
It is also reiterated that references should not be made to Policy Wing in a routine manner seeking para-wise comments on the Writ petitions/ PILs/ appeals as such and only a self-contained reference may be made to the Policy Wing clearly pointing out the exact policy issue(s) (which is/ are not covered under Annexure-A) on which comments/inputs are sought from the Policy Wing. Further, such references need to made only with the approval of the concerned Commissioner.
The Instruction can be accessed at: http://www.a2ztaxcorp.com/wp-content/uploads/2020/06/Policy-Wing-TRAN-1.pdf