Tran 1 credit

[Vasudev Mehta]

Sir since the TRAN-1 had opened due to the supreme court judgement of Filco - 2022 (7) TMI 1232 - SC ORDER, the client inadvertently for claiming tran credit of centre tax filled table 7(d) instead of 7(a) which pertains to state tax. It got transferred to state tax officer which accordingly informed the centre authority to verify the claim since it was not their claim. The centre authority denied the credit on the ground that the same was filled under wrong table. There are various high court judgements which states that credit cannot be denied in case of clerical mistake. Is this a good case to fight. I invite experts views

[Amit Agrawal]

You got good case to fight (although it looks bad, considering mistake happened despite SC giving fresh opportunity to the tax-payer).

These are ex facie views of mine and the same should not be construed as professional advice / suggestion.

[Amit Agrawal]

Correction in my earlier post:

You got good case to fight (even if it looks bad, considering mistake happened despite SC giving fresh opportunity to the tax-payer).

These are ex facie views of mine and the same should not be construed as professional advice / suggestion.

[Padmanathan KV]

Yes. Transitional credit is an indefeasible right which cannot be denied merely on technicality or procedural grounds such as declaration in wrong column etc. Moreover, your case is not that you failed to file TRAN 1 form but only that declaration was inadvertantly made in wrong column. This is only a clerical mistake which any human can make.

[KASTURI SETHI]

Have you got any letter for denial of credit or it was verbally refused ? Suchlike denial is not the intention of Govt.

[Vasudev Mehta]

Sir,

I have received order denying transitional credit from the assistant commissioner. Thank you all for your views experts

[Shilpi Jain]

As long as the claim for credit is not inadmissible, mere mention in the wrong table should not lead to denial. Do make an intimation letter to the department.

[Shilpi Jain]

Apologies, do reply to the rejection letter from the department that it was due to inadvertent error.

[Amit Agrawal]

Once order rejecting the claim is already issued, replying to said officer again will not serve any purpose. Only option to file an appeal against the order.

These are ex facie views of mine and the same should not be construed as professional advice / suggestion.

AI Summary

Transitional credit clerical errors should not bar entitlement; administrative denial can be challenged by appeal.
Transitional credit was inadvertently declared in the wrong table of TRAN 1 (centre tax entered under a state tax column), prompting inter-authority transfer and an order denying the credit for incorrect table selection. The central operative proposition is that a clerical misplacement in TRAN 1 should not extinguish an otherwise admissible transitional credit; remedies include intimation to the department and, if a denial order has been issued, filing an appeal against that order.