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TMI Blog2024 (9) TMI 667X X X X Extracts X X X X X X X X Extracts X X X X ..... r, taking benefit of the order passed by the Hon ble Supreme Court to open the GST portal, filed the revised Form GST TRAN 1 showing the Input Tax Credit under the VAT Act as Nil and thereafter, filed Form DRC-03 reversing the Input Tax Credit in the Electronic Credit Ledger on 27th April 2022. Hence, the petitioner has not availed any credit amount, which was carried forward to GST by reversal of the Input Tax Credit. This Court, in the case of R. N. Laboratories Pvt. Ltd. [ 2024 (4) TMI 764 - GUJARAT HIGH COURT] , in similar facts, wherein the Commissioner of VAT has granted the refund of unutilized Input Tax Credit under the VAT Act which was carried forward to the GST in the Electronic Credit Ledger and later on reversed, directed the r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 15(7) of the Gujarat Value Added Tax Rules, 2003 (for short, the VAT Rules ) with statutory interest on such refund. However, it is prayed to direct the respondents authorities to rectify or modify the assessment order passed under the VAT Act for converting carry forward Input Tax Credit into cash refund along with interest. [2] The brief facts of the case are as under: [2.1] The petitioner, a partnership firm, by filing the Form GST TRAN 1 under Section 140 of the GST Act, carried forward the excess Input Tax Credit balance of Rs.2,42,15,906/- as per the return for the last period under the VAT Act from 1st April 2017 to 30th June 2017 on implementation of the GST regime. [2.2] Under Rule 117 of the Central/Gujarat Goods and Services Ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the date of the order passed on 2nd September 2022. Pursuant to the order passed by the Hon ble Supreme Court, the Central Board of Indirect Tax and Customs (CBIC) issued circular dated 9th September 2022 prescribing the guidelines for the purpose of filing / revising the GST TRAN 1 and TRAN 2. [2.5] It appears that the petitioner, taking benefit of the aforesaid order of the Hon ble Supreme Court and consequent opening of the GST portal by the respondents, filed revised Form GST TRAN 1 and carried forward the Input Tax Credit of VAT into GST regime was changed to Nil . [2.6] It is the case of the petitioner that revision order was passed under Section 75 of the VAT Act for revising the assessment order and recalculating the tax payable, ho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 140 of the GST Act, more particularly, when the petitioner has already rectified and refused Form GST TRAN 1 while showing the Input Tax Credit as Nil , which is accepted by the GST authorities. [4] It was submitted that as per the provisions of Section 142(3) of the GST Act, the amount of Input Tax Credit was paid to be refundable in cash and in accordance with the provisions of the VAT Act. However, as per sub-section (3) of Section 142 of the Act, grant of refund, in case of balance of Input Tax Credit was carried forward under the GST Act, was prohibited. [5] It was submitted that once the petitioner has filed revised Form GST TRAN 1 showing the Nil Input Tax Credit, the prohibition as per Section 142(3) of the Act would no longe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he unutilized Input Tax Credit under the VAT Act. It was, later on, rectified and therefore, refund is required to be granted to the petitioner along with interest as per Section 38 of the VAT Act from the date of eligibility till the date of payment of refund amount and not upto the date of the reversal of the Input Tax Credit in the Electronic Credit Ledger. [9] On the other hand, learned A.G.P. Ms. Shrunjal Shah for the respondents Nos.1 and 2 submitted that the respondents Nos.1 and 2 cannot issue the refund without there being any proceedings pending under the VAT Act and only because the petitioner has reversed the credit in the Electronic Credit Ledger, the petitioner, ipso facto, is not entitled to claim the refund. [10] It was, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nutilized Input Tax Credit under the VAT Act which was carried forward to the GST in the Electronic Credit Ledger and later on reversed, directed the respondents authorities to give refund along with interest from the date of eligibility from 1st April 2017 to the date of payment relying upon the provisions of Section 38 of the VAT Act by observing as under: 20. Merely because the petitioner has transferred the amount to the electronic credit ledger coupled with the fact that such amount remained unutilized till it was reversed by the petitioner by filling Form DRC-03, the transfer of amount to the electronic credit ledger was only a memorandum entry on 01.07.2017 which was reversed on 18.12.2020. For all effect and purpose, the amount was ..... X X X X Extracts X X X X X X X X Extracts X X X X
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