TaxTMI 
TaxTMI 
2026 (3) TMI 826
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.... 1. RULE returnable forthwith. Learned Senior Standing Counsel Mr. Shashvata Shukla waives service of notice of rule on behalf of the respondents. Since short issue is involved, the matter is taken up for final disposal. 2. At the outset, learned advocate Mr. Uchit Sheth appearing for the petitioner has submitted that the issue is squarely covered by the decision of High Court of Bombay in the case of Umicore Autocat India (P) Ltd Vs. Union of India., [2025] 176 taxmann.com 616 (Bombay). 3. The relevant facts leading to filing of the present writ petition are as under: 3.1 The petitioner is a private limited company having place of business at Plot No.C1, Talegaon Industrial Area, Talegaon, MIDC Phase 2, Mindewadi, Taluka Mawal, Di....
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....o positive resolution has been provided. In this regard, the representative of the petitioner met the concerned authority on number of occasions, after which, another reminder was sent on 26.03.2024. 3.5 Learned advocate Mr. Uchit Sheth appearing for the petitioner, while referring to the provisions of Section 18(3) of the Central Goods and Service Tax Act, 2017 (for short "the CGST Act") read with Rule 41 of the Central Goods and Service Tax Rules, 2017 (for short "the CGST Rules"), has submitted that the transfer of the ITC is done through the filing of Form GST ITC-02 on the on-line portal of the GST which the petitioner did. However, a message is displayed on the portal as "Transferee and Transferor should be of the same State -U.T".....
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....y High Court in case of Umicore Autocat India (P) Ltd (supra). It is submitted that under the current GST provision, the ITC transfer in case of amalgamation or merger is restricted to within the same state and for the entities with registrations in different states, ITC cannot be transferred across state lines. 5.1 It is further submitted that such transfer would introduce audit challenges, increasing the risk of tax evasion and fraud, thereby impacting the GST system's integrity. He has also referred to the Circular No. 133 03/2020-GST dated 23.03.2020 providing a clarification in respect of apportionment of ITC in cases of business reorganization. Thus, it is submitted that in absence of any provision of inter State ITC transfer, both....
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....e statutory Form ITC-02, the respondent department has made an endorsement denying the transfer of ITC on the ground that both the companies / entities should be of the same State / Union Territory. 6.3 We find that such incorporation has been made in the statutory form itself without referring to any provisions under which the same is passed. In our considered opinion, the reasons assigned in the statutory form should be separate, clearly demarcating the opinion of the department and shall not be embossed on the statutory form which has been done in the present case. The endorsement at page 32 reflects that the same has been made below the GSTIN number of the transferee and thus the same is displayed on the portal. In absence of clear d....
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.... the Central Government whereas the other component is the SGST, which is levied and collected by the State. Since the imposition of GST is based on the transaction value of products and services, both components operate at the same time as they are destination based tax consumption. The imention of the law makers in bringing the legislation and providing ITC was with a specific object is to provide a continuous chain of set off from original producers point and the service providers point up to the retailers level and thus eliminate the burden of tax cascading. The credit CGST output liability, if it is to be availed seamlessly, it shall be allowed to be availed, irrespective of intra State or inter State supply. In any case, as f....
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....lectronic credit ledger of the Transferor Company to be transferred to the Petitioner Company by physical mode for the time being, subject to the adjustments to be made in future. However we also request the GST Council i.e. Respondent No. 4 as well as the GST Network i.e. Respondent No 2 to provide for mechanism to deal with such contingencies, when the ITC is sought to be transferred from one State to another or from one State to any Union Territory by updating its network to deal with such a situation. We expect the Respondents to do the needful, within a period of six weeks from today Writ Petition made absolute in above terms." 6.5 We do not find any convincing reason to take a contrary view to that taken by the Bo....