Transitional GST credit cannot be rejected without considering documentary proof of service tax deposit; matter remanded for fresh adjudication.

Transitional GST credit was denied despite documentary evidence, including a certificate showing deposit of collected service tax into the Government treasury, and the rejection was held unsustainable because the authorities failed to consider the material on record. The appellate order proceeded on an incomplete appreciation of evidence and reflected non-application of mind, so the denial of credit and the connected orders were quashed. The matter was remanded for fresh adjudication with a personal hearing, so the claim could be reconsidered on the documentary record.

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Issues: Whether the denial of transitional GST credit and the consequential appellate and adjudication orders were liable to be quashed for failure to consider the documentary evidence showing deposit of service tax into the Government treasury, and whether the matter should be remanded for fresh consideration.

Analysis: The petitioner's claim for TRAN-1 credit rested on service tax paid in the pre-GST regime and on documentary material, including a certificate issued by CIDCO confirming deposit of the collected service tax into the Government treasury. The impugned appellate order proceeded on the premise that no such proof was available, without adequately dealing with the material placed on record. On the face of the record, the rejection of credit was founded on an incomplete appreciation of the evidence and reflected non-application of mind. Since the relevant documents were not properly considered, a fresh adjudication was warranted after granting an opportunity of hearing.

Conclusion: The orders denying transitional credit were quashed and set aside, and the matter was remanded to the appellate authority for de novo consideration after giving the petitioner a personal hearing.

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