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TMI Blog2021 (2) TMI 553X X X X Extracts X X X X X X X X Extracts X X X X ..... redit has been taken on 30-6-2017 which is not in accordance with the existing law i.e. Cenvat Credit Rules, 2004. Since, the appellant was not entitled to avail the credit in the month of June, 2017 they were not having any Cenvat credit balance legally in their return before the appointed day, therefore, were not entitled to transfer the said credit in Table 5(a) of TRAN-1 as ITC and was not in accordance with the transitional provision of Section 141(1) of CGST Act, 2017 and rightly disallowed by the adjudicating authority. Further, it is found that the appellant has taken the Cenvat credit of ₹ 61,518/- as ITC in Table 7(b) of GST TRAN-1 related to appellant itself. In the cases where the credit taken on or before 30-6-2017 sho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rred to as the appellant ) against the Order-in-Original No. 01/Service Tax/2019-20 issued vide C. No. GL-4(3)IAR-597/17-18/RKM/KSG.L-II/2018/65, dated 30-4-2019 (hereinafter called as the impugned order ) passed by the Superintendent, Central Goods Services Tax Range L-II, Kishangarh, Distt-Ajmer (hereinafter called as the adjudicating authority ). 2. Brief facts of the case : 2.1 The appellant having GSTIN No. 08AAACR9701L1Z4 is engaged in supply of taxable service under the category of Goods Transport Agency Service, appeared to have wrongly availed the input tax credit of ₹ 2,32,334/- of Cenvat credit taken in GST TRAN-1 as ITC with regard to Input Service of GTA under RCM paid on 6-7-2017 under head 7(b) of TRAN-1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the CGST Rules, 2017 which is liable to be recovered in terms of the provisions of Section 73(1) of the CGST Act, 2017 along with interest payable under Section 50(3) of CGST/SGST Act, 2017 and also liable for penal action under Section 122(2) of the CGST Act, 2017. 4. The adjudicating authority, after considering the submission of the assessee, has passed the order as under :- (i) Disallowed the input tax credit amounting to ₹ 2,32,334/- (Rupees Two Lac Thirty Two Thousand Three Hundred Thirty Four only) and ordered it to be recovered in terms of provisions of Rule 14 of Cenvat Credit Rules, 2004 and Section 73(1) of Central Goods and Services Tax Act, 2017. The Cenvat credit has already been reversed by the assessee, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isions of law. that issue is nowhere relating to wilful evasion of tax or wilful wrong availment of Cenvat credit. that in both the disputes there is no debate or doubt about the availment of input services and payment of input service tax. There is no dispute about the category of input services and utilization of input services for the business purpose. that in the light of the above facts and ingredients of the case it is argued that what is violated is procedural condition of the law and violation was unintentionally due to provisions being new, lack of knowledge and such lapses are ought to occur during the initial phase of new law. that so far as provisions for invoking penalty is concerned it is submitted that the case is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oked in their books of accounts as on 30-6-2017 and 30-9-2017. 8. The relevant provisions of Section 140(1) of the CGST Act, 2017 and Section 140(5) of the CGST Act, 2017 are as under : (1) A registered person, other than a person opting to pay tax under section 10, shall be entitled to take, in his electronic credit ledger, the amount of CENVAT Credit of eligible duties carried forward in the return relating to the period ending with the day immediately preceding the appointed day, furnished by him under the existing law in such manner as may be prescribed : Provided that the registered person shall not be allowed to take credit in the following circumstances, namely :- (i) where the said amount of credit is not admissible ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he payment of Service Tax on 6-7-2017 but the credit has been taken on 30-6-2017 which is not in accordance with the existing law i.e. Cenvat Credit Rules, 2004. Since, the appellant was not entitled to avail the credit in the month of June, 2017 they were not having any Cenvat credit balance legally in their return before the appointed day, therefore, were not entitled to transfer the said credit in Table 5(a) of TRAN-1 as ITC and was not in accordance with the transitional provision of Section 141(1) of CGST Act, 2017 and rightly disallowed by the adjudicating authority. Further, I find that the appellant has taken the Cenvat credit of ₹ 61,518/- as ITC in Table 7(b) of GST TRAN-1 related to appellant itself. In the cases where the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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