2026 (6) TMI 377

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ed and only to the extent for a sum of Rs. 8,79,624/- was allowed under Table 7(a) Part 7B in terms of Rule 117(4) of the CGST Rules read with the provisions of the CGST Act. Relevant portion of the impugned order dated 27.02.2023 reads as under:- "12. FINDINGS: In view of the above, I have gone through the facts of the case, documents and evidence available on record and the reply submitted by the tax payer. I find that:- 12.1. In respect of transitional credit claimed in table 7(a) in Entry 7A credit amount of Rs. 83,20,469/- on account of CGST is found inadmissible as the tax payer did not comply with Section 140(3), 140(4)(b) and 140(6) and 140(7) of CGST Act 2017 and has failed to submit the any duty paid doc....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ould be NIL. The apportionment of credit on inputs and complete reversal thereof under Rule 6 of CENVAT Credit Rules took place at the time of removal of goods. Therefore, in such cases only credit of inputs and inputs contained in semi-finished which existed in stock on the day of the transition and for which conditions prescribed in cl (i) to (v) of Section 140(3) are satisfied would be available. Where the stock shown is very high, verification using VAT return or any other collateral document where stocks are declared can be done. Case II: Exempted and non-exempted goods/services were being manufactured or provided: Rule 6(3) of the CENVAT Credit Rules provided the procedure for apportionment of credit relating to taxable goods....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....oviso to the Section 140(3). Further, the Legal provisions in respect of transitional credit claimed under 7(a) in Entry 7B as per Circular No.182/14/2022-GST dated 10.11.2022 is give below:- S.No. Table No. in TRAN - 1 Provision in CGST Act Indicative list of nature of Credit 1 Col. 6 in Entry 7B in Table 7(a) Proviso to Section 140(3) and Rule 117(4) of CGST Rules This table pertains to credit claim by new taxpayers (e.g. traders) who were not manufacturers or service providers. Deemed credit @ 60% of Central Tax applicable where CGST is 9% or more and 40% where CGST is less than 9% can be availed. The provision applies where the assessee is not in possession of an invoice or any other documents evidencing....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ounsel would further contend that the impugned order has been passed in gross violation of the Principles of Natural Justice, as the petitioner was deprived of a reasonable opportunity to submit its reply/explanation along with the supporting documents to substantiate the case. 5. Per contra, the learned Standing Counsel appearing for the respondents would submit that the petitioner failed to substantiate the claim for transitional credit with necessary documents and therefore, the impugned order came to be passed in accordance with law. 6. This Court has considered the submissions made on either side and perused the materials on record. 7. On perusal of the records, it is seen that the petitioner had filed a revised TRAN-1 return ....