Transitional input tax credit disallowance set aside where supporting materials were not considered before assessment.

Transitional input tax credit under the GST carry-forward scheme could not be sustained where the assessment was made without considering the supporting materials produced by the assessee. The Madras HC noted that the documents relied upon had not been placed before the Assessing Officer at the time of the impugned order, and that the relevant materials were therefore not examined. On that basis, the assessment disallowing carry forward of VAT and entry tax credit was set aside, and the matter was remanded for fresh consideration on merits after giving the assessee an opportunity to produce the materials and be heard.

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Issues: Whether the assessment order disallowing carry forward input tax credit under the transitional provisions was liable to be set aside and the matter remanded for fresh consideration when the assessee's supporting materials were not considered.

Analysis: The writ petition concerned disallowance of transitional credit claimed under the statutory scheme governing carry forward of VAT and entry tax credit into GST. The assessee asserted that the supporting documents furnished during the enquiry were not taken into account while passing the assessment order. The respondent also accepted that the materials relied upon by the assessee had not been placed before the Assessing Officer at the time of the impugned order. In these circumstances, the impugned assessment was found to have been made without considering the relevant materials, warranting a fresh examination of the claim on merits.

Conclusion: The assessment order was set aside and the matter was remanded to the respondent for fresh consideration after giving the assessee due opportunity to produce the required materials and to be heard.

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