TaxTMI 
TaxTMI 
2023 (9) TMI 130
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....ional credit of Rs. 89,88,498/- as claimed under Table 7(a)7(A)/7.a.A in the revised FORM GST TRAN-1 filed by the petitioner under Section 140 of Central Goods and Services Tax (CGST) Act, 2017, as inadmissible Transitional Credit. 3. The Petitioner was an assessee under the provisions of the Tamil Nadu Value Added Tax (TNVAT) Act, 2006. With the implementation of respective GST enactments with effect from 01.07.2017, the petitioner filed FORM TRAN-1 under Section 140 of the CGST Act, 2017 in a bid to transmit the Input Tax Credit that was lying unutilized with the petitioner as on 30.06.2017. 4. The Petitioner had transferred the Input Tax Credit on the stock of inventory of locally purchased taxable goods valued at Rs. 6,19,89,648/- and....
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.... was also pointed out by the Central Goods and Services Tax (CGST) authorities, namely the Superintendent of GST & Central Excise, Tiruvarur Range, by a communication dated 19.01.2023. 9. The petitioner appears to have replied to the same by a communication dated 23.01.2023 wherein, it was stated as follows: "Dear Sir, Please refer to your above letter, in this connection hereby submit the followings - I am timber merchant, I purchased timbers within the state of Tamil Nadu after paid TNVAT and I also imported timbers from foreign country. Hence closing stock as on 30.06.2017 consist of both ITC - non availed stock and ITC already availed stock-break up details as follows Sl Closing Stock 30.06.2017 VAT-ITC available 1 61989648....
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....der dated 27.02.2023 based on the verification report dated 09.02.2023 received from their counterpart namely the Superintendent of GST & Central Excise, Tiruvarur Range in O.C.No.23 of 2023. In the aforesaid communication, the Superintendent of GST and Central Excise, Tiruvarur Range has stated as follows:- "1. The taxpayer Tvl.Sri Renga Timbers (GSTIN 33AHXPR4039G1ZX), vide their letter dated 23-01-2023, submitted - (i) self-certified copy of Form GST TRAN-1 filed; (ii) Declaration in Annexure-A; & (iii) VAT Returns for the months of 01/2017 to 06/2017. 2. On verification of their Tran-1 claim, it is seen that though they have claimed CGST Credit in the revised FORM GST TRAN-1 application, they have not produced any documents relating....
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....ansited in FORM TRAN-1 on 24.08.2017 was carried forward by mistake instead, the amount of VAT/Entry tax on inputs supported by invoices in Table 7.c under the caption "Inputs Held in Stock". This was sought to be rectified by the petitioner by filing a revised return on 28.11.2022. However, by mistake, the petitioner filed a revised TRAN-1 by showing the amounts against the inputs held in stock where duty paid invoices are available in Table7.a.A. 15. The learned Additional Government Pleader for the first respondent submits that as on date, only revised TRAN-1 is available and since even as per the petitioner's own admission, credit was wrongly transited and there was no credit available against Table 7.c in TRAN-1, and therefore, th....
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....indefeasible in law. Although, the petitioner has blundered all the way by filing form TRAN-1 on 24.08.2017 and the revised return on 28.11.2022, the fact remains that the amount of Rs. 89,88,498/- was the credit that was lying unutilized in the last return filed by the petitioner for the month of June 2017. Such credit cannot be denied even if there is a mistake in the returns filed in TRAN-1 twice. 22. The Hon'ble Supreme Court in Unichem Laboratories Vs. Commissioner of Central Excise, (2002) 7 SCC 145, has held that it is not on the part of the duty of the revenue to deny the benefit that was otherwise legitimately available to an assesssee. 23. Considering the above, Court is inclined to quash the impugned order and remits the ca....