HC Raps revenue for failing to act on a transitional-credit claim despite directions


In M/s Siddharth Enterprises through Anr. v. The Nodal Officer [TS-625-HC(GUJ)-2021-GST dated October 14, 2021] Hon’ble Gujarat High Court observed that the direction of this Court to allow filing of declaration in form GST TRAN-1 and GST TRAN-2 by M/s Siddharth Enterprises (“the Petitioner”) so as to enable them to claim transitional credit of the eligible duties has not been followed by the Nodal Officer and thus directed him to appear before the court.

A common judgment was delivered by the Hon’ble Gujarat High Court on September 6, 2019 in which all the four writ applications were allowed and Department was directed to permit the Petitioner to allow filing of declaration in form GST TRAN-1 and GST TRAN-2 so as to enable him to claim transitional credit in terms of Section 140(3) of the Central Goods and Services Tax Act, 2017 (“the CGST Act”).

Observed that, after passing the above-mentioned judgment four review applications were filed by the Nodal Officer which were rejected by this Court vide order dated February 14, 2020.

Further, observed that, the concerned authority did not abide by the directions given by this Court and even after two years the order of the Court has been ignored by the Department.

Pointed that, all that is expected by the Department is to open the portal and allow the Petitioner to file declaration in Form GST TRAN-1 and GST TRAN-2 so as to enable them to claim the transitional credit of the eligible duties in respect of the inputs held in stock on the appointed day in terms of Section 140(3) of the CGST Act.

Therefore, due to non-compliance of the order, directed the Nodal Officer to present before the Court.

Online GST Course by Bimal Jain

Recorded: Certified Advanced GST Course

Course Details: Certificate of Participation will be Provided, Free GST Updates on E-mail, WhatsApp, Telegram for 1 Year, Background Material and PPT will be Provided on the downloadable basis, Total 21 Recorded Sessions (60 Hours), will be available for 120 hours or 60 Days whichever expires earlier.

For Registration:- https://cutt.ly/hxjl5Cu

Recorded: GST Course on Exports, Deemed Exports, SEZ, Imports, Merchandise Exports, Inverted Duty Structure (including Refunds)

Course Details: 6 Online Recorded Sessions of 2.30Hrs each with Background Material (BGM)

For Registration:- https://cutt.ly/pvw7mzl

For more details, Call: +91-8076563802, E-mail: intern@a2ztaxcorp.com, Web: www.a2ztaxcorp.in

DISCLAIMER: The views expressed are strictly of the author and A2Z Taxcorp LLP. The contents of this article are solely for informational purpose and for the reader’s personal non-commercial use. It does not constitute professional advice or recommendation of firm. Neither the author nor firm and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any information in this article nor for any actions taken in reliance thereon. Further, no portion of our article or newsletter should be used for any purpose(s) unless authorized in writing and we reserve a legal right for any infringement on usage of our article or newsletter without prior permission.