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TMI Blog2024 (4) TMI 992X X X X Extracts X X X X X X X X Extracts X X X X ..... x and Entry Tax remaining un-utilized in the return shall be allowed to be transitioned and such a registered person is entitled to take credit of such amount in his electronic credit ledger. Therefore, there is no scope for denying such amount which was transited u/s 140 of the TNGST Act, 2017. Thus, no reasons to sustain the impugned order. Therefore, the impugned order passed by the respondent in GSTIN stands quashed. Accordingly, the Writ Petition stands allowed. No costs. Consequently, the connected miscellaneous petition is closed. - Honourable Mr. Justice C. Saravanan For the Petitioner : Mr. S. Karunakar For the Respondent : Mr. R. Suresh Kumar, Additional Government Pleader ORDER Heard both sides. 2. In this Writ Petition, the pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) 136 taxmann.com 97(Madras) . Further reference was also made to the decision of the Division Bench of the Telangana High Court rendered in Magma Fincorp Limited Vs. State of Telangana reported in 2019 (26) G.S.T.L.7 (Telangana). 6. Per contra, learned Additional Government Pleader for the respondent would submit that only the input tax credit lying unutilized as on 30.06.2017 was capable of being transitioned under Section 140 of the TNGST Act, 2017 is clear. It is further submitted that at best, it is open for the petitioner to seek refund of the advance tax paid that had remained unutilized as on 30.06.2017. It is submitted that there is no scope for transitioning advance tax lying unutilized. He submits that advance tax was not equival ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... titled to take credit of such amount in his electronic credit ledger . Section 140 (1) of the TNGST Act, 2017 reads as under:- 140. Transitional arrangements for input tax credit. (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 [within such time and] 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 ..... er of Sales Tax v. Auriya Chambers of Commerce, AIR 1956 SC 1556 and State of Gujarat v. Ramprakash P Puri, (1969) 3 SCC 156. Substantial benefit of such un-utilised credit cannot be denied as these credits were earned legitimately under the Tax Enactments which were in force prior to 01.07.2017. 13. My views are fortified by a Division Bench of this Court. While dealing with somewhat similar situation, in the case of Commissioner of GST and Central Excise, Assistant Commissioner of GST etc vs. Bharat Electronics Limited vide order dated 18 November 2021 in W.A.No.2203 of 2021 against the order made in W.P.No.2937 of 2019 [Authored by Hon'ble Mr.Justice Mohammed Shaffiq while sitting along with Hon'ble Mrs.Justice Pushpa Sathyanaray ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of receipt of a copy of this order. 16. In fine, the Writ Petition stands allowed. Consequently, connected miscellaneous petition is closed. No costs. 12. In Magma Fincorp Limited s case, it was held as under:- 23. Once it is admitted that credit was available to the petitioner on the date of switch over from VAT regime to GST regime and once it is admitted that the petitioner may be entitled to make a claim for this credit in other modes, we think that the second respondent ought to have given a purposive interpretation to Section 140 of the Act read with Sections 16 to 21 of the Telangana GST Act 2017. As he has failed to do the same, the matter requires reconsideration. 13. In view of the above discussion, I find no reasons to sustain t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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