Entitlement to unutilised input tax credit under pre-GST VAT law for registered dealers with closing stock left undecided

SC considered whether registered dealers could claim unutilised input tax credit under the U.P. VAT Act after GST commenced on 1-7-2017 despite holding closing stock. The Court did not decide the substantive question but issued notice and listed the matter returnable in four weeks, leaving the entitlement unresolved pending further proceedings.

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"Delay condoned." "Exemption Applications are allowed." The Court framed the core question whether, following implementation of the Goods and Services Tax Act from 1-7-2017, registered dealers remain "entitled for the benefit of the un-utilised input tax credit accrued under the U.P. Vat Act though having closing stocks." Notice was issued returnable in four weeks and dasti service permitted. Procedural reliefs granted include condonation of delay and allowance of exemption from filing; substantive adjudication deferred to the notice process. The order confines present determination to the stated legal issue concerning transition of input tax credit entitlements from the U.P. VAT regime to the GST regime and directs further proceedings accordingly.

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