Transitional Credit on non - moving inputs

[Kaustubh Karandikar]

XYZ reversed the CENVAT credit during Excise regime on slow / non – moving inputs for which provision was made in the books of accounts to write off the same. During GST regime, again re – credit of the same was taken under the transitional credit provisions since there is no such requirement under the GST provisions. Show Cause Notice issued for such wrong availment of transitional credit. Any case law or circular or clarification to defend the case?

[KASTURI SETHI]

Dear Sir,

Can you post relevant contents of SCN ? If posted, it will be convenient to trace out any authority in your favour.

AI Summary

Transitional credit on non-moving inputs challenged; Show Cause Notice alleges wrongful availment under GST transitional provisions. Taxpayer reversed CENVAT credit on slow/non-moving inputs by accounting write-off under the excise regime, then claimed the same amount as transitional credit on GST implementation; tax authorities issued a Show Cause Notice alleging wrongful availment of transitional credit, and the respondent requested the Show Cause Notice to trace supportive authorities or guidance.