In a significant ruling for taxpayers under the GST regime, a division bench of the Bombay High Court comprising K. R. Shriram & Milind N. Jadhav has directed the Department to allow the transitional credit through GSTR-3B.
The Petitioner, Chep India Private Limited has approached the Court seeking a direction to carry forward transitional credit of Rs. 84,53,085/- credit of CENVAT by allowing petitioner to file declaration in form GST TRAN 1, either electronically or manually or be permitted to take the credit through monthly return GSTR-3B.
The petitioner had filed TRAN 1 through Andhra Pradesh branch login instead of Maharashtra branch GST login where petitioner was holding centralized service tax registration. This has resulted into their CENVAT credit balance of eligible duties at the end of June 2017 not getting transferred in electronic credit ledger of credit of either Maharashtra branch or Andhra Pradesh branch. In fact, Assistant Commissioner had forwarded the representation to the Deputy Commissioner (GST) of I.T. Grievance Redressal Committee for further necessary action.
The division bench observed that “if it is possible or feasible to open the portal so that the assessee may be able to file its TRAN 1 return or revised return or re-revised return in Maharashtra, an attempt should be made for that. If it is not possible or feasible, the concerned Assistant Commissioner shall communicate the same to petitioner within two weeks of uploading of this order. In such a case, petitioner should be permitted to make unutilized credit in its GST 3B Forms to be filed on the monthly basis. We find that similar approach has been taken by the Hon’ble High Court at Calcutta in Nodal Officer, Jt. Commissioner, IT Grievance, GST Bhavan Vs. M/s. Das Auto Centre in its judgment pronounced on 14.12.2021. Similar view also has been taken by Panjab & Haryana High Court in the case of Hans Raj Sons Vs. Union of India reported in 2020 (34) G.S.T.L. 58 (P & H).”
Mr. Vinay Shroff and Mr. Rajat Gupta appeared for the Petitioner.
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