TRAN-1 Verification

[Murari Agrawal]

We were registered under C.E. & Service tax and submitted TRAN-1 for basic Duty balances of C.E & service tax (no PLA balance or Vat credit). In 2018 we got a mail from department seeking verification, relevant documents were submitted against receipt. Again in 2019 we got mail seeking copies of Invoices related to credit availed during past six months which were submitted against receipt. Now again another Inspector has called over phone seeking all documents along with stock statement and concerned invoices saying we are eligible for amount of duty involved in closing stock, which we think is not correct. Also our audit under EA-2000 has been completed till June, 2017 in May, 2019. Kindly advise.

AI Summary

Business Challenges Need for Closing Stock to Claim Cenvat Credit Transfer; Seeks Clarity on Section 140 CGST Act A business registered under Central Excise and Service Tax submitted a TRAN-1 form to carry forward Cenvat Credit without any PLA balance or VAT credit. The department requested verification of documents multiple times, including invoices and stock statements, asserting eligibility for duty on closing stock. The business questioned the necessity of having corresponding closing stock to justify the credit amount. Experts advised that verification of documents is standard under GST laws and that credit can be transferred as per the last excise return, irrespective of the closing stock as of June 30, 2017. The discussion also touched on transitional credit rules under Section 140 of the CGST Act, 2017.