The Kerala High Court dismissed the petition on the Issue of Claim of Transitional Credit as the assessee can avail of Statutory Remedy under the Kerala State Goods and Service Tax ( KSGST/CGST ) Act, 2017
Mr Shameem Ahamed appeared for the petitioner, Ms Jasmine M. M., Government Pleader for the 1st respondent and Mr Thomas Mathew Nellimoottil, Senior Standing Counsel for the respondent Nos. 2 and 3.
Metalex Agencies, the petitioner challenged the assessment order under the provisions of the Kerala State Goods and Service Tax ( KSGST/CGST ) Act, 2017. The petitioner is a registered dealer under the provisions of the KSGST Act, 2017 and filed its returns for the financial year 2017-18 which were examined.
Certain discrepancies in respect of the transitional credit claimed by the petitioner in the return were noticed for which the petitioner was issued Show Cause Notice. On verification of the electronic credit ledger it was noticed that the petitioner had availed CGST amount of Rs. 62,38,303/- as transitional credit for TRAN – 1 on 19.09.2017 as per Column No. 6(K) of the GSTR 9, petitioner had availed CGST amount of Rs. 62,38,303 as transitional credit supra.
Bill No. 15538 was not found and it was noticed the incorrect amount was claimed against other bills. Some bills were not visible. Prima facie, it was observed that the petitioner had violated Section 140 read with Rule 117 of the CGST Act and Rules made thereunder in respect of his claim for transitional credit.
The petitioner was issued a notice asking him to produce the documents, bills, etc., to support his claim for transitional credit. The 3rd respondent examined the documents submitted by the petitioner and submitted a report before the 1st respondent for proceeding with the assessment proceedings. Again, the petitioner was issued notice under Section 73 of the CGST/KSGST Act, 2017 to support his claim for the TRAN credit availed by him as mentioned in the show cause notice.
The 1st respondent took note of the report submitted by the 3rd respondent and, thereafter passed the order. The petitioner has been disallowed the trans credit of Rs.8,63,813/- for which interest and penalty have been levied under the Act.
The petitioner submitted that though there is a provision for filing an appeal under the provisions of Section 107 of the CGST/KSGST Act, 2017 against the impugned order, have the Court invoking writ jurisdiction under Article 226 of the Constitution of India against the said order as the appeal could be a futile exercise since the claim of the petitioner is in respect of the excise duty component allegedly paid by the petitioner.
Justice Dinesh Kumar Singh viewed that the appellate authority will examine all the documents and evidence submitted by the petitioner/assessee while deciding the appeal. Therefore the contention of the Counsel for the petitioner is not valid that since there is no express provision for remanding the matter back to the assessing authority, the appeal would be a futile exercise.
The Court dismissed the writ petition on the grounds of the availability of alternative remedies.
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