Transitional TDS credit under GST upheld, with the rejection order set aside as unsustainable.

Unavailed TDS credit carried forward from the pre-GST regime was treated as tax eligible for transition into GST under Section 140 of the Tamil Nadu GST Act, 2017. The Court followed its earlier ruling on the same issue and held that the transitional credit claimed through TRAN-1 could not be denied on that basis. The objection that an alternate appellate remedy was available was not accepted, and the order rejecting the claim was held unsustainable. The transitional credit claim was therefore upheld and the writ petition succeeded.

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Issues: Whether the petitioner was entitled to transition the unavailed tax deducted at source credit into the GST regime under Section 140 of the Tamil Nadu Goods and Services Tax Act, 2017, and whether the impugned order rejecting such claim could be sustained.

Analysis: The challenge concerned the reversal of transitional credit claimed through TRAN-1 in respect of TDS amount carried forward from the earlier regime. The Court followed its earlier decision on the same issue, which had held that TDS collected in the earlier regime partook the character of tax and was eligible for transition under Section 140. In view of that binding reasoning, the objection that the petitioner had an alternate appellate remedy was not accepted, and the impugned order was found unsustainable.

Conclusion: The petitioner was held entitled to transition the TDS credit under Section 140, and the impugned order was quashed.

Final Conclusion: The transitional credit claim was upheld and the writ petition succeeded.

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