Transitional Input Tax Credit denied where TRAN-2 proof and correct TRAN-1 declaration were lacking; appeal permitted for merits review.

Entitlement to transitional input tax credit was contested on grounds of non-compliance with transitional procedures: the petitioner failed to furnish mandated documentary proof in Form TRAN-2 and made incorrect entries in Form TRAN-1. The legal question concerns whether procedural non-compliance and absence of invoices or stock evidence defeat transitional credit; the outcome on the present record is denial of the claimed credit due to lack of substantiation. Remaining factual disputes as to existence and quantity of input stock are directed to the appellate authority for merits determination, with liberty granted to challenge the impugned order within thirty days.

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Issues: Whether the petitioner was entitled to transition input tax credit on exempt stock held on the cut-off date (01.07.2017) when the petitioner failed to produce required proof in Form TRAN-2 and made declarations in TRAN-1 in an incorrect column.

Analysis: The dispute concerns entitlement to transitional input tax credit for stocks held on the GST cut-off date and compliance with the transitional procedure. The Court examined whether the petitioner produced the documentary proof of input stock and invoices as mandated by the transitional scheme and whether procedural irregularities in declaration (TRAN-1 column entry) affected entitlement. The impugned order records failure to furnish details in Form TRAN-2 as required under the transitional rules and absence of necessary documents to substantiate the claimed quantity of inputs available on the cut-off date. Several factual disputes remain concerning the existence and quantity of input stock, which are appropriate for determination by the appellate authority under the GST enactments.

Conclusion: The writ petition is dismissed for lack of merit; the petitioner is denied the claimed transitional input tax credit on the present record. The petitioner is granted liberty to challenge the impugned order before the Appellate Authority within 30 days, and the Appellate Authority shall decide the appeal on merits after hearing, uninfluenced by observations in this order.

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