2023 (4) TMI 585

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... has been passed contrary to the settled judicial principles and the law laid down by the Hon'ble Supreme Court in several matters including in the case of Commissioner of Central Excise v. Bombay Dyeing Manufacturing Company [(2007) 215 ELT3]. 2. The petitioner had been an assessee under the erstwhile Central Excise regime as well as Finance Act, 1994 under which service tax is levied and migrated into the regime of GST on and from 01.07.2017. Tran-1 had been filed on 10.07.2017 and 11.08.2017 bringing forward the unutilized credit as transitional credit. Admittedly and the counter filed by the respondent does not dispute this position, though the credit had been transitioned, it had not found place in the Electronic Credit Ledger (EC....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... respect of which the facts are identical. Based on the audit objection, a show cause notice was issued on 26.07.2019 proposing to recover the interest invoking section 50(3) of the CGST Act and to deny the CENVAT credit on inputs lying in stock. 6. As far as the second limb of the disallowance relating to slow moving stock, the petitioner does not pursue the challenge in this writ petition and seeks liberty to challenge the same by way of statutory appeal. Seeing as this writ petition has been instituted on 11.12.2020 within 30 days from the date of receipt of the impugned order, there is no bar qua limitation and hence, the petitioner is permitted to challenge that portion of the impugned order within a period of 30 days from today witho....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....makes an undue or excess claim of input tax credit under subsection (10) of Section 42 or undue or excess reduction in output tax liability under subsection (10) of section 43, shall pay interest on such undue or excess claim or on such undue or excess reduction, as the case may be, at such rate not exceeding twenty-four percent, as may be notified by the Government on the recommendations of the Council. 8. With the substitution as above, the position that emerges is that liability to interest will only in a situation where there has been actual utilisation of credit by the assessee concerned. This has made amply clear by the language post substitution to the effect that where there is undue or excess claim of ITC under Section 42(10), (se....