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TMI Blog2023 (4) TMI 585X X X X Extracts X X X X X X X X Extracts X X X X ..... t falls within the domain of the GST department. There is no explanation for why the transitioned credit did not find place in the ECL. Be that as it may and seeing as the credit was unavailable in the ECL, the petitioner reflected the same as available ITC in its retention and in Form GSTR-3B return - the petitioner cannot be faulted for the same, since transition has been sought in line with the procedures set out under the Act and Rules. The flaw had been occasioned in the maintenance of the ECL by the revenue. Thus, it was quite justified for the petitioner to ensure, by all legitimate methods possible, that the credit available was presumed for utilization, as and when required. Disallowance relating to slow moving stock - HELD TH ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ces Act, 2017 (CGST Act) and assessee on the file of the respondent officer. It challenges an order in original dated 18.11.2020 that has been passed contrary to the settled judicial principles and the law laid down by the Hon'ble Supreme Court in several matters including in the case of Commissioner of Central Excise v. Bombay Dyeing Manufacturing Company [(2007) 215 ELT3] . 2. The petitioner had been an assessee under the erstwhile Central Excise regime as well as Finance Act, 1994 under which service tax is levied and migrated into the regime of GST on and from 01.07.2017. Tran-1 had been filed on 10.07.2017 and 11.08.2017 bringing forward the unutilized credit as transitional credit. Admittedly and the counter filed by the res ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctive of fact that such credit had not been utilized. The same position obtained in regard to Education Cess and Higher Education Cess as well in respect of which the facts are identical. Based on the audit objection, a show cause notice was issued on 26.07.2019 proposing to recover the interest invoking section 50(3) of the CGST Act and to deny the CENVAT credit on inputs lying in stock. 6. As far as the second limb of the disallowance relating to slow moving stock, the petitioner does not pursue the challenge in this writ petition and seeks liberty to challenge the same by way of statutory appeal. Seeing as this writ petition has been instituted on 11.12.2020 within 30 days from the date of receipt of the impugned order, there is no ba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stitution of Section 50 vide Finance Act, 2022 with retrospective effect from 01.07.2017, sub-section 3 of Section 50 read as follows:- (3) A taxable person who makes an undue or excess claim of input tax credit under subsection (10) of Section 42 or undue or excess reduction in output tax liability under subsection (10) of section 43, shall pay interest on such undue or excess claim or on such undue or excess reduction, as the case may be, at such rate not exceeding twenty-four percent, as may be notified by the Government on the recommendations of the Council. 8. With the substitution as above, the position that emerges is that liability to interest will only in a situation where there has been actual utilisation of credit by the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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