Jharkhand HC Rejects ESL Steel’s ITC Claim Prior to the Approval of Resolution Plan by NCLT [Read Order]
Jharkhand HC Rejects ESL Steel’s ITC Claim Prior – Approval of Resolution Plan by – NCLT – TAXSCAN
Jharkhand HC Rejects ESL Steel’s ITC Claim Prior – Approval of Resolution Plan by – NCLT – TAXSCAN
The Jharkhand High Court rejected ESL Steel’s Input Tax Credit (ITC) claim prior to the approval of the resolution plan by the National Company Law Tribunal.
M/s ESL Steel Limited, the petitioner sought for quashing and setting aside the Order-in-Original No. passed by the Additional Commissioner, CGST & CEX, Ranchi (Respondent No. 2), whereby and whereunder the said Respondent No. 4, in a quite illegal and arbitrary manner, has confirmed the demand of Rs. 6,02,34,616/- u/s 74(9) of the Central Goods and Service Tax Act, 2017 on the ground of irregular availment of transitional credit during the period 2017-18, which includes the transitional credit of Rs. 5,10,21,204/- claimed by the Petitioner prior to 17.04.2018 and balance amount of Rs. 92,13,412/- has been claimed by the Petitioner as Transitional credit by filing new TRAN-1
It appeared that the Petitioner revised its TRAN1 on 30.11.2022 and sought to avail of Input Tax Credit amounting to Rs. 92,13,412/- against the 86 invoices of Capital Goods, which were not availed earlier, under Section 140(1) of the CGST Act, 2017.
The division bench of Justice Rongon Mukhopadhyay and Justice Deepak Roshan observed that respondent No. 2 has illegally and arbitrarily confirmed the demand of Rs.6,02,34,616/- u/s 74(9) of the Central Goods and Service Tax Act, 2017 and imposed interest and penalty, on the ground of irregular availment of transitional credit during the period 2017-18, which includes the transitional credit of Rs.5,10,21,204/- claimed by the Petitioner for the period before 17.04.2018 and balance amount of Rs.92,13,412/- has been claimed by the Petitioner as Transitional credit by filing new TRAN-1.
But at the same time, the petitioner can also not take advantage of the ITC of the earlier period i.e., any dues before 17.04.2018, the date on which the National Company Law Tribunal has approved the resolution plan of the Petitioner.
The Court held that “the petitioner can also not take credit of the ITC of the earlier period i.e., before the date on which the National Company Law Tribunal has approved the resolution plan of the Petitioner.”
The petitioner is not entitled to the claim of Rs. 92,13,412/- which has been claimed by the Petitioner as Transitional credit by filing a new TRAN-1 in light of the Order passed by the Supreme Court in the case of Union of India Vs. Filco Trade Centre Put. Ltd.
To Read the full text of the Order CLICK HERE
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