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

Transitional input tax credit on capital goods: full credit may be claimed when goods are received in the GST period, subject to eligibility.
Transitional input tax credit was claimed for capital goods invoiced before but received after the appointed GST date; statutory basis under Section 140(2) and procedural filing in TRAN-1 were central. The department sought reversal for not claiming prior-period credit, while respondents argued that receipt in the GST period permits claiming full credit, that procedural non-filing of TRAN-1 parts should not defeat entitlement, and that refund or case-law remedies exist for goods in transit.