2026 (8) TMI 72

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....ue Added Tax Act, 2003 ['VAT Act' for short] the appellant-Revenue has proposed the following substantial questions of law arising out of the order dated 29.08.2024 passed by the Gujarat Value Added Tax Tribunal, Ahmedabad in Second Appeal No. 569/2024 for the Assessment Year 2017-18 [01.04.2017 to 30.06.2017]: A. Whether the Hon'ble Tribunal has erred in law and in facts in deciding that service provider company under GVAT regime can claim C/F ITC under GST regime on the ground of capital goods purchased by him under GVAT by filing TRAN-1? B. Whether the Hon'ble Tribunal has erred in law and in facts by removing the entire demand including the demand of ITC wrongly availed by the respondent along with interest and....

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.... claimed ITC of Rs. 50,72,884/- under the VAT assessment to be carried forward under Form TRAN-I as transactional ITC in view of the coming into force of the GST Act w.e.f. 01.07.2017. However, the Tribunal held that the Assessing Officer has no power or jurisdiction to raise any demand for which, the assessee carried forward the ITC under the GST Act by way of filing Form TRAN-I and accordingly, the Tribunal set aside the demand of Rs. 92,83,377/- while upholding the order of the Assessing Officer to disallow the ITC of Rs. 50,72,884/- in assessment order which was claimed as carried forward ITC by the appellant in Form TRAN-I under the GST Act, the Tribunal held as under: "5) After taken into consideration rival submissions of bo....

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....t there was no taxable turnover of the assessee for the period under consideration resulting into the output tax liability and accordingly, no ITC was required to be claimed by the assessee. However, the Assessing Officer, considering the fact that the assessee has claimed carry forward of ITC in TRAN-I of Rs. 50,72,884/-, disallowed the same in the assessment order and levied interest and penalty as stated here-in-above. 6. We are in complete agreement with the reasons assigned by the Tribunal for holding that the assessee could not have claimed the ITC in the VAT return so as to carry forward the same in Form TRAN-1 to be filed under GST regime. The Tribunal has, therefore, rightly also held that the Assessing Officer could not have ra....