9911796707
TMI Blog2023 (11) TMI 709X X X X Extracts X X X X X X X X Extracts X X X X ..... specified that the dealer who was either paying tax at a fixed rate or paying a fixed amount in lieu of the tax payable under the existing law shall be entitled to take, in his electronic credit ledger, credit of eligible duties in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the appointed day. The petitioner has claimed credit of this TRAN credit in its returns for the period from 01.07.2016 to 30.06.2017. The Judgment in the case of M/S. USHA MARTIN LIMITED, VERSUS ADDITIONAL COMMISSIONER, CENTRAL GST AND EXCISE, EXCISE, JAMSHEDPUR, JOINT COMMISSIONER, CENTRAL GST AND EXCISE, JAMSHEDPUR, COMMISSIONER OF CGST CX, JAMSHEDPUR, UNION OF INDIA [ 2022 (11) TMI 1266 - JHARKHAND ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oods and Services Tax, the petitioner had got registered under the Central GST and Kerala State GST Act from 01.07.2017. Now the petitioner is registered dealer under the provisions of the Kerala GST Act and the Central GST Act, 2017. During the existence of KVAT period, the petitioner had opted for payment of tax under the compounding scheme under Section 8(f)(i) of the KVAT Act in lieu of of tax payable under Section 6(1) of the KVAT Act. Under the compounding scheme applicable in respect of gold under KVAT Act, a dealer was entitled to avail the benefit of compounding scheme even if the dealer was engaged in interstate purchases as dealer was entitled to collect tax on its sale not exceeding 1.15%. Any excess tax collected was required t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s reply to the said show cause notice. After considering the reply to the said show cause notice, vide the order dated 23.08.2023, it was stated that the reply of the petitioner had been found to be satisfactory and no further action was required to be taken in the matter. 3. The State GST Department in the meantime, issued Exhibit P-10 show cause notice on 02.08.2023 to the petitioner. In the notice it is mentioned that the intelligence Officer, Intelligence Unit, Kottayam had submitted a report against the ineligible TRAN credit availed by the petitioner during the financial year 2017-18. The Intelligence Unit carried out investigation against this alleged ineligible TRAN credit by issuing summons under Section 70 to the petitioner. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he facts and relevant provision Section 140(6) of the GST Act 2017, the Intelligence Officer has been of the view that the petitioner was only eligible for the State GST credit of 25,12,417 which represented the VAT paid for intrastate purchase held in the stock on 30.06.2017. However the petitioner had availed the ITC of Rs. 1,09,23,552/-(Rupees One crore nine lakh twenty three thousand five hundred and fifty two only) as State GST credit which included tax paid for both interstate and intrastate purchases and thus the petitioner had claimed central sales tax during interstate purchase as SGST credit through TRAN-01 return, resulting in the improper claim of transitional credit amount of Rs. 84,11,135/-(Rupees Eighty four thousand eleven t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were not one and same. Therefore, the bar thus created under Rule 6 will not come into play for issuing impugned notice by the State GST in respect of the incorrect utilisation of TRAN credit by the petitioner to an extent of Rs. 1,09,23,552/-(Rupees One crore nine lakhs twenty three thousand five hundred and fifty two only) as mentioned in the show cause notice. 8. The next submission of the Learned Counsel for the petitioner is that there is no provision under GST for disallowing the TRAN Credit availed by a dealer in the KVAT regime. 9. TRAN credit is transitional input tax credit made use of by a dealer under the KVAT Act regime under Section 140(6) of the KGST Act 2017, it is specified that the dealer who was either paying tax at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the present case. In the present case the petitioner has claimed the TRAN in respect of the purchases made by him during 01.07.2016 to 30.06.2017 for which he has claimed credit in GST TRAN. On examination, the authority has found that the claim of the petitioner is not borne out from the records. Therefore, I am of the view that the the Judgment of M/s. Usha Martin Limited (supra) on which reliance has been placed by the Learned Counsel for the petitioner does not have application to the facts of this case. 11. The another aspect of the matter is that the petitioner has challenged the show cause notice. Challenge to the show cause notice in writ Court is maintainable only in certain situations that is where the notice is wholly witho ..... X X X X Extracts X X X X X X X X Extracts X X X X
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