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TMI Blog2025 (1) TMI 1304X X X X Extracts X X X X X X X X Extracts X X X X ..... he CGST Act, 2017.
On perusal of the provisions of Section 140 (5) of the CGST Act, it is for the petitioner to prove that the amount was received after 30th June, 2017 which has been duly recorded in the books of accounts within a period of 30 days from the date of receipt. Therefore, it is incumbent upon the respondent Nos. 2 and 3 to provide an opportunity to the petitioner, to show that the requirements of the Sub Section (5) of Section 140 of the CGST Act are fulfilled by the petitioner along with the requisite documents and the proof.
The petitioner has been denied the opportunity of personal hearing by the respondent Nos. 2 and 3 and in such circumstances, there is a clear breach of the principle of natural justice.
Conclusion - It is necessary for authorities to provide a personal hearing and issue a reasoned order when processing claims for Transitional ITC. Matter remanded to the respondent authorities to reconsider the petitioner's claim for Transitional ITC.
Petition allowed by way of remand. X X X X Extracts X X X X X X X X Extracts X X X X ..... this Court which was decided by Order dated 11.03.2020 directing the respondents for the verification and permitting the petitioner to upload the Form GST TRAN-1. 3.2 The petitioner had to approach to this Court for contempt of the aforesaid order. The respondent had to file a SLP before the Hon'ble Apex Court and subsequently, pursuant to direction of the Hon'ble Apex Court in the case of Union of India & Anr. Vs. Filco Trade Centre Pvt. Ltd. & Ors. [Special Leave to Appeal (C) No. 32709-32710/2018], the respondent-the Central Board of Indirect Taxes & Customs (for short "the CBEC") issued the Circular No. 180/12/2022-GST dated 09.09.2022 permitting to file the claim of transitional credit on or before 30th November, 2020. 3.3 The petitioner therefore, again filed Form GST TRAN-1 on 11.10.2022 amounting to Rs.61,42,909/- on the GST Portal. 3.4 The respondent No. 2-The Assistant Commissioner CGST, Division Bench -II, Ahmedabad issued a letter dated 20.12.2022 for verification regarding the Form GST TRAN-1 filed by the petitioner on 11.10.2022. The petitioner was also called upon to submit Form ER-1/2/3, ST-3, invoices, stock register, RG-I, RG-II Registers and other supportive d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fied as per the Circular after hearing the petitioner in person on or before 15.01.2023. 5.1 It was submitted that in spite of such notice, no date of personal hearing was given to the petitioner by the respondent No. 3. 5.2 Learned advocate Mr. Mishra for the petitioner has invited the attention of this Court to the impugned order wherein, the respondent No. 3 after reproducing the final remarks received by him from the respondent No. 2 has disallowed the claim of the Transitional Input Tax Credit pertaining to service tax without giving any reason. It was therefore, submitted that the impugned order is passed in violation of the principle of natural justice. 5.3 It was further submitted that the transactions pertaining to the claim of Transitional Input Tax Credit of service tax are covered within the scope of Sub Section (5) of Section 140 of the CGST Act and if the opportunity of hearing would have been provided to the petitioner, the same could have been explained and the petitioner would be entitled to the Transitional Input Tax Credit of Rs.13,53,244/-. 5.4 It was further submitted that as per the Circular No. 182/14/2022-GST dated 10.11.2022 more particularly Clause No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s not dispute the facts that transitional credit of Rs. 13,53,244/- (pertaining to Service Tax Units) claimed under Table 5(a) of the Form GST TRAN-1 was not admissible as per sub-section (1) of Section 140 of the GST Acts, 2017 inasmuch as there was Zero / Nil balance of CENVAT Credit in the Service Tax Returns filed for the period ending 30.06.2017. 21. That, the Petitioner, vide letter dated 24.02.2023 claimed that they had shown the aforesaid amount (pertaining to Service Tax) in Table 5(a) due to inadvertent error and requested that their transitional credit may be considered in Table-7(a) of the Form GST TRAN-1. In this regard, it is submitted that the time limit prescribed by the Hon'ble Supreme Court for filing or amending Form GST TRAN-1 was already over. Further, Respondent No. 2 had no power to make changes in transitional credit claimed in Form GST TRAN-1. Therefore, the request of the Petitioner was beyond time limit for filing or amending of Form GST TRAN-1 as per the directions of the Hon'ble Supreme Court and therefore the same was not considered." 7. Learned Assistant Government Pleader Mr. Raj Tanna for the respondent No. 3 submitted that the respondent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 140: Transitional arrangements for input tax credit (5) A registered person shall be entitled to take, in his electronic credit ledger, credit of eligible duties and taxes in respect of inputs or input services received on or after the appointed day but the duty or tax in respect of which has been paid by the supplier under the [existing law, within such time and in such manner as may be prescribed], subject to the condition that the invoice or any other duty or tax paying document of the same was recorded in the books of account of such person within a period of thirty days from the appointed day: Provided that the period of thirty days may, on sufficient cause being shown, be extended by the Commissioner for a further period not exceeding thirty days: Provided further that said registered person shall furnish a statement, in such manner as may be prescribed, in respect of credit that has been taken under this subsection. 9. On perusal of the above provisions of Section 140 (5) of the CGST Act, it is for the petitioner to prove that the amount was received after 30th June, 2017 which has been duly recorded in the books of accounts within a period of 30 days from the dat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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