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TMI Blog2024 (10) TMI 1005X X X X Extracts X X X X X X X X Extracts X X X X ..... e to pay tax under the GST regime. Sub-section (2) prohibits any credit to be availed after the expiry of one year from the date of issue of tax invoice relating to such supply. As far as the transitional claims are concerned there is a further limitation prescribed as on 27.12.2017 and then of course, as per the Hon ble Supreme Court s directions there was a window of two months provided. Unless the claim is made in Form GSTR TRAN-1 within the time initially provided or that provided later, to get over the teething problems, there can be no claim raised even for credit of input tax and its set off and never of a refund in cash. There are no reason to interfere with the order rejecting the claim for refund, which refund in any event is not applicable, and the petitioner can only claim ITC as set-off against the output tax. Petition dismissed. - HONOURABLE THE CHIEF JUSTICE AND HONOURABLE MR. JUSTICE PARTHA SARTHY For the Petitioner: Mr. Nikhil Kumar Agrawal, Advocate Ms. Aditi Hansaria, Advocate Mr. Yash Sahay, Advocate For the Respondent: Mr. Vikas Kumar, Standing Counsel ORAL JUDGMENT (Per: HONOURABLE THE CHIEF JUSTICE) The petitioner, an assessee under the CGST Act, 2017, clai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Proper Officer. Each of the sub- sections deal with different contingencies and the emphasis laid is on Section (8) (b). Sub-clause (a) of Section 8 enables the tax authorities to recover any tax, interest, fine or penalty recoverable as per the earlier existing law through the provisions of the CGST Act, 2017, which amount will not be available for claiming ITC. While clause (a) enables the Department to make such recovery and prohibits any ITC claim on such recovery made, clause (b) of Section 142(8) is a benefit granted to the assessee. 7. As per clause (b) of Section 142(8) when an assessment under the earlier existing law, initiated before, on or after the appointed date of the CGST Act is completed then, any amount of tax, interest, fine or penalty which becomes refundable to the person shall be refunded to him in cash under the said law. The argument is that, what is stated therein is with respect to any assessment or adjudication proceedings completed under the VAT Act, whether it is instituted before, on or after the appointed date, wherein any refund is enabled, it has to be refunded in cash. According to the learned Counsel this this would only indicate that, if an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d items under Section 140 of the CGST Act was allowed for a period of 90 days from the appointed date under Rule 117 of the CGST Rules 2017. This was extended from time to time, and ultimately the last date was fixed as on 27.12.2017. The Division Bench found that there was a legitimate expectation, in a running concern, that when the tax regime changed, they would be allowed to carry forward the credit as available to them under the previous regime. It was found that denying such a vested right would be contrary to Article 14 and runs in conflict with the essence of doctrine of legitimate expectation . It is on this reasoning that a direction was issued to the respondents to permit the petitioner therein to either submit Form TRAN-1 electronically by opening the electronic portal for that purpose or allowing the petitioner to tender the said form manually on or before 15.10.2019 to enable proper processing of the claim for input tax credit; especially considering the teething problems inherent, in the assesses familiarizing themselves with the new regime and the procedure for transition from the old to the new regime. 11. We cannot but notice that those difficulties were reckoned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es for ITC claimed on self-assessment to be credited to the electronic ledger and sub- section (4) provides for the amount available in the electronic credit ledger to be used for making payment towards output tax payable under the GST. 14. Section 18 of the GST Act has the nominal heading Availability of credit in special circumstances . Section 18 (1) (2) reads as under; - 18. Availability of credit in special circumstances. (1) Subject to such conditions and restrictions as may be prescribed (a) a person who has applied for registration under this Act within thirty days from the date on which he becomes liable to registration and has been granted such registration shall be entitled to take credit of input tax in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the day immediately preceding the date from which he becomes liable to pay tax under the provisions of this Act; (b) a person who takes registration under sub-section (3) of section 25 shall be entitled to take credit of input tax in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the day immediately preceding t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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