2023 (10) TMI 862 - HC - GST

Transfer of TDS from Pre-GST era to Post-GST era - HELD THAT - The present issue is with regard to the transfer of TDS from Pre-GST era to Post-GST era has been settled by virtue of an order passed by this Court in a batch of writ petition in M/S. DMR CONSTRUCTIONS VERSUS THE ASSISTANT COMMISSIONER, COMMERCIAL TAX DEPARTMENT, RASIPURAM, NAMAKKAL DISTRICT. 2021 (4) TMI 261 - MADRAS HIGH COURT , wherein, it has been categorically held that the Assessee is entitled for transfer of TDS from Pre-GST era to Post-GST era. This Court feels that issuing the impugned show cause notice by denying the transfer of TDS from the pre-GST era to post-GST era is illegal and the same is contrary to the law laid down by this Court. This Court is inclined to quash the impugned show cause notice dated 29.09.2023 and accordingly, the said show cause notice is quashed - Petition allowed.

Summary

Issues involved:
The issues involved in this case include challenging a show cause notice dated 29.09.2023 regarding the transfer of TDS from the Pre-GST era to the Post-GST era under the Tamil Nadu Goods and Services Act.

Comprehensive details of the judgment for each issue:

1. Transfer of TDS from Pre-GST era to Post-GST era:
The petitioner claimed entitlement to TDS for a specific amount and the ability to transfer and utilize it as Input Tax Credit (ITC) under the Tamil Nadu Goods and Services Act. Despite previous show cause notices and replies, no order had been issued. The current show cause notice limited the transfer of ITC and denied the transfer of TDS for a significant sum. The petitioner argued that a previous court order had established the right to transfer TDS from the Pre-GST era to the Post-GST era. The court referred to relevant sections of the Act and a detailed circular on tax deduction at source to support the petitioner's claim. The court concluded that denying the transfer of TDS was illegal and contrary to established law.

2. Legal Precedents and Interpretations:
The court referenced a previous order in DMR constructions vs The Assistant Commissioner, Commercial Tax Department, which clarified the entitlement of an Assessee to transfer TDS from the Pre-GST era to the Post-GST era. The court also cited a case from Telangana where a purposive interpretation of Section 140 of the Act was emphasized. Additionally, the court referred to a judgment from Seaford Court Estates Ltd. V. Asher to highlight the importance of interpreting statutes to give effect to legislative intent.

3. Court Decision and Order:
Considering the established legal principles and precedents, the court quashed the impugned show cause notice dated 29.09.2023. The respondent's counsel acknowledged the court's previous order, leading to the decision to allow the writ petition and close the connected miscellaneous petition.

By virtue of the legal interpretations and precedents cited, the court ruled in favor of the petitioner, emphasizing the right to transfer TDS from the Pre-GST era to the Post-GST era under the Tamil Nadu Goods and Services Act.