2024 (12) TMI 513

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....the respondents 1 to 3 and Smt. Divya Datla, learned counsel appearing for the 4th respondent. 2. The petitioner, which was earlier registered under the Central Excise Act, 1944, had claimed a CENVAT credit of Rs.2,48,23,034/- as on 30.06.2017. Subsequently, this CENVAT credit was transitioned to the GST regime, when it came into force on 01.07.2017. It appears that an audit objection was taken against the said CENVAT credit, to the extent of Rs.1,39,31,604. On the basis of this audit objection, a show-cause notice was issued to the petitioner, on 18.11.2019, to show-cause why the said CENVAT credit should not be disallowed. The petitioner had filed a reply, on 26.08.2020, setting out the grounds as to why the said CENVAT credit should be ....

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....s transitioned to the GST regime strictly in accordance with the provisions of Section-140(1) of the CGST Act. 6. Smt. S. Santhi Chandra, learned Senior Standing Counsel for the respondents 1 to 3 as well as Smt. Divya Datla, learned counsel appearing for the 4th respondent would contend that the view taken by the 1st respondent as to the ineligibility of the petitioner, for transitioning such CENVAT credit to the GST regime is correct and in accordance with the provisions of the GST Act. 7. A reading of the show-cause notice as well as the Impugned Order, dated 30.06.2023, issued by the 1st respondent, shows that the 1st respondent has not gone into the question of whether the petitioner was eligible for grant of CENVAT credit or not. Th....

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....nder the existing law 2[within such time and] in such manner as may be prescribed: Provided that the registered person shall not be allowed to take credit in the following circumstances, namely:-- (i) where the said amount of credit is not admissible as input tax credit under this Act; or (ii) where he has not furnished all the returns required under the existing law for the period of six months immediately preceding the appointed date; or (iii) here the said amount of credit relates to goods manufactured and cleared under such exemption notifications as are notified by the Government." 11. This provision stipulates that a person shall be entitled to take in his electronic credit ledger the amount of CENVAT credit available as....