2024 (4) TMI 410 - HC - GST

Tax Credit Dispute: Section 140 Challenge Halts Coercive Actions with Interim Relief for Petitioner's Claims

HC examined petitioner's claim for transitional tax credit under Section 140 of CGST Act, 2017. Appeal initially dismissed, but HC agreed to hear the ... Disallowance of CENVAT Credit - Section 140 of CGST Act, 2017 - transitional credit - HELD THAT:- In the present case, petitioner's appeal has been dismissed. Since, no Tribunal is working at this stage, therefore, the High Court can examine the case. At this stage, Rishab Kapoor, Advocate, accepts notice on behalf of the respondents and seeks time to get instructions. Adjourned to for 11.09.023 - To be heard along with CWP-2687-2021. In the meantime, no coercive steps shall be taken. Issues Involved:The issues involved in the judgment are the claim of transitional credit under Section 140 of the CGST Act, 2017 and the dismissal of the petitioner's appeal.Claim of Transitional Credit:The petitioner claimed transitional credit of approximately Rs. 1.5 crore in its annual return of the last year. The counsel for the petitioner argued that this aspect was not considered by the authorities, and they did not refer to the relevant conditions prescribed under Section 140 of the CGST Act, 2017. The counsel cited a judgment from the High Court of Jharkhand to support the argument. Dismissal of Petitioner's Appeal:The petitioner's appeal was dismissed by an order dated 13.06.2023. Since no Tribunal was functioning at that time, the High Court decided to examine the case. Notice was accepted by the respondent's counsel, who sought time to get instructions. The petition was adjourned to a later date and was to be heard along with another case. It was ordered that no coercive steps shall be taken in the meantime.