Assistant Commissioner's order under Section 143 allows Rs. 23,31,308 cenvat credit after deducting inadmissible amounts

Calcutta HC disposed of a writ petition concerning implementation of an Assistant Commissioner's order under Section 143 of WBGST/CGST Act, 2017 regarding inadmissible ITC. The petitioner's cenvat credit claim was allowed for Rs. 25,30,178 as ITC after deducting Rs. 14,454.65 from the original claim of Rs. 25,44,632.62. Since transitional cenvat credit of Rs. 1,98,870 for November 2017 was already credited in December 2017, the final allowable amount was Rs. 23,31,308. The court found authorities may have erroneously subtracted Rs. 1,98,870 from the allowable credit during implementation. HC directed respondents to credit Rs. 23,31,308 as cenvat credit ITC and Rs. 19,019.7 as SGST credit to petitioner's ledger if not already credited, after verifying the ledger.

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ISSUES:

Whether the respondent authorities erred in deviating from the order passed under Section 143 of the WBGST/CGST Act, 2017 by subtracting Rs. 1,98,870/- from the admissible input tax credit (ITC) amount without filing an appeal.Whether the petitioner is entitled to the credit of Rs. 19,019.7/- in SGST ledger as directed by the order under Section 143 of the said Act.Whether the authorities are obligated to implement the order dated 24th February, 2023 fully and correctly, including proper ledger crediting of allowed amounts.

RULINGS / HOLDINGS:

The Court held that the authorities cannot deviate from the order passed under Section 143 of the WBGST/CGST Act, 2017, especially when no appeal has been preferred against such order, and if the amount of Rs. 23,31,308/- has not been credited, it must be forthwith credited to the petitioner's CGST ledger.The Court directed that the SGST credit of Rs. 19,019.7/- allowed by the order must be credited to the petitioner's ledger if it has not already been done, subject to verification of the petitioner's ledger by the respondents.The Court concluded that the writ petition does not survive after the directions to implement the order correctly and disposed of the petition accordingly, with no order as to costs.

RATIONALE:

The Court applied Section 143 of the WBGST/CGST Act, 2017 which empowers the proper officer to pass orders regarding transitional credit claims.The Court relied on the operative portion of the order dated 24th February, 2023, which allowed the petitioner's claim of cenvat credit and SGST credit in specific amounts after deducting amounts already credited in earlier filings.The Court emphasized that since no appeal was filed against the order, the respondent authorities are bound to implement it strictly without unauthorized deductions.The Court recognized a possible error in the implementation by the authorities in subtracting Rs. 1,98,870/- again from the allowed credit and corrected this by directing immediate credit if not already done.No dissent or doctrinal shift was noted; the decision follows established principles of statutory compliance and enforcement of orders under the CGST framework.

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