2023 (11) TMI 709

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....erala Value Added Tax Act and on advent of Goods and Services Tax, the petitioner had got registered under the Central GST and Kerala State GST Act from 01.07.2017. Now the petitioner is registered dealer under the provisions of the Kerala GST Act and the Central GST Act, 2017. During the existence of KVAT period, the petitioner had opted for payment of tax under the compounding scheme under Section 8(f)(i) of the KVAT Act in lieu of of tax payable under Section 6(1) of the KVAT Act. Under the compounding scheme applicable in respect of gold under KVAT Act, a dealer was entitled to avail the benefit of compounding scheme even if the dealer was engaged in interstate purchases as dealer was entitled to collect tax on its sale not exceeding 1.....

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....ottayam 1 Range. The petitioner submitted his reply to the said show cause notice. After considering the reply to the said show cause notice, vide the order dated 23.08.2023, it was stated that the reply of the petitioner had been found to be satisfactory and no further action was required to be taken in the matter. 3. The State GST Department in the meantime, issued Exhibit P-10 show cause notice on 02.08.2023 to the petitioner. In the notice it is mentioned that the intelligence Officer, Intelligence Unit, Kottayam had submitted a report against the ineligible TRAN credit availed by the petitioner during the financial year 2017-18. The Intelligence Unit carried out investigation against this alleged ineligible TRAN credit by issuing su....

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....ailed by the petitioner. After considering the facts and relevant provision Section 140(6) of the GST Act 2017, the Intelligence Officer has been of the view that the petitioner was only eligible for the State GST credit of 25,12,417 which represented the VAT paid for intrastate purchase held in the stock on 30.06.2017. However the petitioner had availed the ITC of Rs. 1,09,23,552/-(Rupees One crore nine lakh twenty three thousand five hundred and fifty two only) as State GST credit which included tax paid for both interstate and intrastate purchases and thus the petitioner had claimed central sales tax during interstate purchase as SGST credit through TRAN-01 return, resulting in the improper claim of transitional credit amount of Rs. 84,1....

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.... issue before the Central GST and the State GST were not one and same. Therefore, the bar thus created under Rule 6 will not come into play for issuing impugned notice by the State GST in respect of the incorrect utilisation of TRAN credit by the petitioner to an extent of Rs. 1,09,23,552/-(Rupees One crore nine lakhs twenty three thousand five hundred and fifty two only) as mentioned in the show cause notice. 8. The next submission of the Learned Counsel for the petitioner is that there is no provision under GST for disallowing the TRAN Credit availed by a dealer in the KVAT regime. 9. TRAN credit is transitional input tax credit made use of by a dealer under the KVAT Act regime under Section 140(6) of the KGST Act 2017, it is specif....