9911796707
TMI Blog2024 (12) TMI 513X X X X Extracts X X X X X X X X Extracts X X X X ..... es that it is only eligible CENVAT credit that can be transitioned. This provision stipulates that a person shall be entitled to take in his electronic credit ledger the amount of CENVAT credit available as on 30.06.2017. The CENVAT credit which was available to the petitioner as on 30.06.2017 was Rs.2,48,23,034/-. The petitioner was entitled to utilize this credit under the CENVAT regime even during the pendency of the proceedings initiated under the show-cause notice dated 18.11.2019. It may also be noted that as on the date of transition, that is 01.07.2017, there was no show-cause notice or any doubt raised against the claim of the petitioner for availing of such CENVAT credit. The respondents 1 to 3 would contend that the words of elig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... transitioned to the GST regime, when it came into force on 01.07.2017. It appears that an audit objection was taken against the said CENVAT credit, to the extent of Rs.1,39,31,604. On the basis of this audit objection, a show-cause notice was issued to the petitioner, on 18.11.2019, to show-cause why the said CENVAT credit should not be disallowed. The petitioner had filed a reply, on 26.08.2020, setting out the grounds as to why the said CENVAT credit should be allowed. At that stage, an Order of abeyance, dated 17.02.2021 is said to have been passed on the ground that the issues raised in this case had been answered by the CESTAT in favour of the assessee and the same was subjected to further appeal before this Court. 3. The petitioner, h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the view taken by the 1st respondent as to the ineligibility of the petitioner, for transitioning such CENVAT credit to the GST regime is correct and in accordance with the provisions of the GST Act. 7. A reading of the show-cause notice as well as the Impugned Order, dated 30.06.2023, issued by the 1st respondent, shows that the 1st respondent has not gone into the question of whether the petitioner was eligible for grant of CENVAT credit or not. The 1st respondent, as can be seen from the paragraph Nos.13.3 13.5 of his Order, has taken the view that the pendency of the show-cause notice issued under the Central Excise Act, 1944, on 18.11.2019, would render the input tax credit ineligible for transitioning to the GST regime. 8. The 1st r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e has not furnished all the returns required under the existing law for the period of six months immediately preceding the appointed date; or (iii) here the said amount of credit relates to goods manufactured and cleared under such exemption notifications as are notified by the Government. 11. This provision stipulates that a person shall be entitled to take in his electronic credit ledger the amount of CENVAT credit available as on 30.06.2017. The CENVAT credit which was available to the petitioner as on 30.06.2017 was Rs.2,48,23,034/-. The petitioner was entitled to utilize this credit under the CENVAT regime even during the pendency of the proceedings initiated under the show-cause notice dated 18.11.2019. It may also be noted that as on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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