Case Details: Pinnacle Motor Works Pvt. Ltd. vs. Deputy Commissioner (Adjudication), Thrissur (2026) 40 Centax 290 (Ker.)
Judiciary and Counsel Details
- Ziyad Rahman A.A., J.
- Shri K. Srikumar, Sr. Adv. & Smt. Ammu Charles, Adv., for the Petitioner.
- Smt. Reshmitha R Chandran, SR.G.P, Smt. Preetha S. Nair & Shri V. Girishkumar, SCs, for the Respondent.
Facts of the Case
The petitioner, a private limited company registered under the CGST Act, sought transitional input tax credit (ITC) from the erstwhile Kerala VAT/CST regime. Form GST TRAN-1 and TRAN-2 were initially filed in 2017 claiming carry-forward amounts. Pursuant to the Supreme Court’s prescribed window, revised Form GST TRAN-1 and TRAN-2 were filed in 2022. The revised forms reflected only additional claims in TRAN-1 and nil amounts in TRAN-2, based on the understanding that the revision was confined to new claims. The officer rejected the revised claim and subsequently passed an adjudication order denying the entire 2017 claim solely because the revised 2022 forms showed lower figures, despite central verification confirming eligibility. The petitioner submitted that the omission in the revised forms was bona fide. The matter was accordingly placed before the Kerala High Court.
High Court Held
The Kerala High Court held that denial of transitional ITC solely on the basis of lower revised figures was unsustainable where eligibility had been centrally verified. The Court observed that the omission in the 2022 revisions was bona fide and that no evasion of tax was alleged. It further noted that although statutory authorities could not permit rectification of TRAN forms, such relief could be exercised under the writ jurisdiction, rendering alternate remedies ineffective. Accordingly, the assessment order and consequential demand were quashed. The High Court directed rectification of Form GST TRAN-1 and TRAN-2 and reconsideration of the transitional ITC claim on merits.
List of Cases Cited
- Pinnacle Motor Works (P.) Ltd. v. State of Kerala — WP No. 34974 of 2023, dated 25.10.2023 — Referred [Para 5]
- S.K. Eldhose v. State Tax Officer — (2023) 9 Centax 279 (Ker.) = 2023 (77) G.S.T.L. 385 (Ker.) — Referred [Para 8]
- UOI v. Filco Trade Centre (P.) Ltd. — 2022 (64) G.S.T.L. 385 (S.C.) — Referred [Para 2]
