TRAN 1 Capital goods received after the appointed date but invoice in june -2017

[Yellapu SivaPrasad]

Sir,

my client has received the capital goods on 7.07.2017 but the invoiced raised ON 24.06.2017 the in the month of June-2017. he claimed the credit 100 % in TRAN-1 .Now , the departmental officer has gave notice for reversal of the credit as you did not claimed the 50% credit on ER1 Returns i.e you did not claimed in earlier tax regime.Hence, you are not eligible claim 100% and reverse the same along with interest Please provide any clarifications issued by the CBIC or case laws for my case to substantiate .Please guide me

AI Summary

Client Challenges GST Notice: Claims 100% Credit on Capital Goods, Citing Compliance and Legal Precedents A client received capital goods on July 7, 2017, with an invoice dated June 24, 2017, and claimed 100% credit in TRAN-1 under GST. The department issued a notice for reversal, arguing only 50% credit was claimable under the previous tax regime. Respondents argue the department's stance is incorrect, as the client complied with Central Excise law and the GST regime allows 100% credit at once. They cite case law supporting the client's position and emphasize that procedural issues should not hinder genuine credit claims. The discussion includes references to transitional provisions and relevant legal precedents.