2021 (4) TMI 832 - HC - GST

Allowability of migration of the tax deducted at source as input tax credit by including it in GST TRAN-I - Section 140(1) of the JGST Act, 2017 - HELD THAT - Mr. Ashok Kumar Yadav, learned G.A.-I prays for and is allowed two weeks' time to seek instructions and file counter affidavit. Learned counsel for the State would bring on record the rectification order dated 13 th March 2019. He should also obtain instructions as to whether the last VAT assessment order ending the tax period 30th June 2017 has been passed or not. Let the matter appear on 4th May 2021.

Summary

Issues:
1. Entitlement to claim migration of tax deducted at source as input tax credit under Section 140(1) of the JGST Act, 2017.
2. Denial of input tax credit by the assessing authority and the appellate authority.
3. Adjudication of appeal against the original order despite the petitioner's request for withdrawal.
4. Dismissal of appeal against the rectification order.
5. Non-supply of certified copy of the rectification order.

Analysis:
The main issue in this case revolves around the petitioner's entitlement to claim migration of the tax deducted at source as input tax credit under Section 140(1) of the JGST Act, 2017. The petitioner, through counsel Mr. Sumeet Gadodia, contends that despite denial of the entire ITC initially, a rectification order during the appeal process denied a specific amount of TDS claimed as ITC. The petitioner had requested withdrawal of the appeal, which was not granted, and the appeal against the rectification order was subsequently dismissed. However, the certified copy of the rectification order has not been provided, prompting the petitioner to approach the High Court for relief.

Mr. Ashok Kumar Yadav, representing the respondents, has been granted two weeks to seek instructions and file a counter affidavit. Additionally, the learned counsel for the State is directed to bring on record the rectification order dated 13th March 2019 and clarify whether the last VAT assessment order for the tax period ending on 30th June 2017 has been issued. The next hearing is scheduled for 4th May 2021, allowing the petitioner to file a reply if deemed necessary.

The denial of input tax credit by both the assessing authority and the appellate authority raises significant concerns regarding the petitioner's compliance with the provisions of the JGST Act, 2017. The procedural aspects of the appeal process, including the dismissal of the appeal against the rectification order, further complicate the matter. The non-supply of the certified copy of the rectification order adds to the petitioner's grievances, necessitating judicial intervention to ensure a fair resolution of the issues at hand.