2021 (12) TMI 223

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....as also registered under the Goods and Service Tax Act, 2017 ('the GST Act' hereinafter). 2. It is the say of the petitioner that certain capital goods in the nature of machinery intended to be used in dyeing and printing fabrics from April to June, 2017 were purchased by him. The fabrics were exempted from tax under the VAT Act, they were taxable goods under the GST Act. 2.1 According to the petitioner, there was no prohibition under the VAT Act to claim proportionate Input Tax Credit in relation to the capital goods, if they were partly used for manufacturing taxable goods and partly for exempt goods. It has also relied on Section 18 (1)(d) of the GST Act, which allows Input Tax Credit in respect of the capital goods in cases where exem....

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....isions of the law and also because of non-availment of any opportunity of hearing in this regard. 5. Prayers sought for are as follow: "24... A. This Hon'ble Court may be pleased to issue a writ of certiorari or writ in the nature of certiorari or any other appropriate writ or order quashing and setting aside impugned order dated 12.1.2021 (annexed at Annexure A) passed under the Vat Act; B. This Hon'ble Court may be pleased to declare that the assessing authority under the Vat Act does not have jurisdiction to demand tax with interest and penalty under the Vat Act on the ground of disallowance of transitional tax credit claimed under the GST Act particularly when such tax credit is lying unutilized in the electronic credit....