This page contains GST Input Tax Credit Legal Updates including Transitional Credit cases.

1. Case of TVS Motor Company Vs Asstt Commr reported in 2018-TIOL-71-HC-MAD-GST

Issue in brief

The petitioner has filed the writ petition challenging the order dated 30.5.2018, which according to the respondents is only an SCN – The petitioner’s case is that the impugned order is not an SCN, but a demand, which has been made on them without considering the objections filed by petitioner and that it is not in the nature of an SCN, as a final decision has been taken and communicated to them – It is further submitted that the impugned order denying a legitimate transitional credit eligible to petitioner in accordance with Section 140 of CGST Act, 2017 is illegal and arbitrary and has been passed in violation of principles of natural justice –Case of TVS Motor Company Vs Asstt Commr reported in 2018-TIOL-71-HC-MAD-GST

The decision of the High Court

The High Court held that the impugned order, is not in the nature of an SCN, but a demand by itself whereby the petitioner’s claim for transitional credit has been rejected and that they have been directed to reverse the credit along with interest within 15 days, failing which, penal action would be initiated for recovery of arrears under Section 79 of the said Act – These are sufficient grounds to hold that the impugned order is in violation of principles of natural justice – On this ground alone, the petitioner is entitled to succeed.

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