TRAN-1 Credit

[DEEPAK SHARMA]

A advertisement company audit of service tax is under process, the company were availing credit on input and were paying full rate of Service Tax. In audit officer raised question to payment of taxes under RCM on TPT and security service, the company agreed to its payment. However they wanted to claim it through TRAN-1. Is it possible today to take credit through TRAN-1, please suggest

[Ganeshan Kalyani]

In my view, Tran1 due date is already passed. The Tran1 due date for special case where tran1 was submitted but not filed etc were given opportunity to file file return. In my view your case do not fall under the special case. Thus the tax paid under reverse charge can claimed thru refund.

[KASTURI SETHI]

Whether to opt for channel of refund or availment of ITC, it is not litigation free. As advised by Sh.Ganeshan Kalyani Ji, you must apply for refund or for permission to avail credit. If the Department rejects (possibility is there), you must fight for your substantive right. I am sure you will get the decision in your favour through Appellate channels. You have paid taxes/duties and credit cannot be forfeited on the grounds of procedural requirements with the implementation of GST Acts.

Throw ball in the court of the department. With the passage of time, there may be a decision of any court on this issue.

[DR.MARIAPPAN GOVINDARAJAN]

It is not possible today. However you may write to the GST council in this regard. They may consider the same. Wait for some time. If the amount involved is high then you may move to High Court to file a writ petition as advised by our experts.

[Ganeshan Kalyani]

Time , money and patients is required to fight for your right to get refund. Obviously, the amount involved versus the cost of litigation need to be compared before taking a call eventually.

AI Summary

Input tax credit after TRAN-1 deadline may be pursued by refund application, permission to avail credit, or litigation.
The TRAN 1 filing window has closed for ordinary cases and only limited transitional exceptions existed; taxes paid under the reverse charge mechanism therefore cannot now be claimed through TRAN 1. Such amounts should be pursued by filing for a refund or seeking permission to avail credit from the department, with judicial or appellate challenge available if administrative relief is denied, subject to cost-benefit consideration and potential representations to the GST Council.