2023 (11) TMI 1152 - HC - GST

Denial of claim for transitional credit in respect of inward supplies made before 01.07.2017 - petitioner s application for extending the limitation for claiming the transitional credit within the extended period of limitation of sixty days rejected - HELD THAT - From perusal of Sub-section (5) of Section 140 of the GST Act, it is evident that beyond the period of thirty days an assessee can claim the transitional credit of input tax within another thirty days on an order passed by the Commissioner. Unless the order is passed by the Commissioner extending the period of limitation up to sixty days or less than, an assessee cannot claim the input tax credit in respect of the inward supply taken before 01.07.2017 - In the present case, the petitioner claimed input tax credit in his return after the initial period of thirty days expired, but without any order from the Commissioner extending the period of limitation beyond thirty days. It is not found that the Commissioner has committed any error of law or jurisdiction in rejecting the application which has been filed belatedly after five years from the prescribed date. As the limitation period was not extended, the petitioner has been denied the benefit of transitional credit in respect of input tax vide Exhibit P-5 order in original dated 13.03.2023. There are no substance in the writ petition - petition dismissed.

Summary

Issues:
The judgment involves the quashing of orders denying transitional credit for inward supplies made before 01.07.2017 and rejecting the application for extending the limitation for claiming transitional credit.

Transitional Credit Claim:
The petitioner sought to claim transitional credit under the GST Act for inward supplies made before 01.07.2017. The GST Act allows for claiming input tax credit within thirty days, extendable by the Commissioner for another thirty days. The petitioner failed to obtain an order from the Commissioner to extend the period of limitation beyond thirty days. The Commissioner rejected the application for extension as it was filed belatedly after five years from the prescribed date, leading to denial of transitional credit.

Commissioner's Decision:
The Commissioner's rejection of the application for extending the limitation period was deemed lawful and within jurisdiction. The denial of transitional credit in respect of input tax was upheld in the original order dated 13.03.2023. The petitioner was advised to seek statutory remedies if aggrieved by the said order. The period spent in prosecuting the writ petition would be excluded from calculating the period of limitation for filing an appeal against the order.

Conclusion:
The writ petition was disposed of with the finding that there was insufficient substance to entertain it further. The petitioner was directed to pursue statutory remedies if dissatisfied with the order denying transitional credit. The judgment clarified that the time spent on the writ petition would not count towards the limitation period for appealing the order.