WRONG HEAD IN TRAN-1

[NAMAN DOKANIA]

An assessee has claimed TRAN-1 Credit in Wrong head. Instead of 140(5) they have put the same in 140(1). Department in disallowing the credit of the same. Please quote some case Law in assessee favour about this clerical human posting error allowed by department.

[KASTURI SETHI]

SH.NAMAN DOKANIA JI,

Here are two case laws in your favour. First is preferable.

FIELD MOTOR PVT. LTD. Versus UNION OF INDIA 2019 (4) TMI 1245 - ORISSA HIGH COURT

COMMR. OF GST & C. EX., CHENNAI Versus CHECKPOINT APPAREL LABELING SOLUTIONS INDIA PVT. LTD. 2020 (10) TMI 463 - MADRAS HIGH COURT

[Ganeshan Kalyani]

The department is strict in allowing Trans 1 credit. So you have try hard to convince the authority. You have to emphasize that it was procedural error but the credit is correct as per transitional provision under GST.

AI Summary

Transitional input tax credit clerical error: misclassification on TRAN 1 can be argued for correction to preserve entitlement. An assessee misposted transitional input tax credit on the TRAN 1 form under Entry 140(1) instead of Entry 140(5), and the department disallowed the claim for misclassification. The core contention is that this was a clerical or procedural posting error and the substantive entitlement to transitional credit remains intact; reliance on case law permitting correction and representations emphasising procedural error and transitional entitlement are recommended.