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IN THE HIGH COURT OF GAUHATI, ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH
MANISH CHOUDHURY
Abdul Barek S/o Late Nomaz Ali – Appellant
Versus
State of Assam – Respondent
| Table of Content |
|---|
| 1. petitioner alleges inaction by respondents. (Para 2) |
| 2. details of petitioner's business and tax credit claim. (Para 3 , 5 , 10 , 11 , 14 , 15) |
| 3. court's discussion on transitional input tax credit process. (Para 4 , 7 , 8 , 9 , 12 , 13 , 16 , 18) |
| 4. procedural adherence in credit verification (Para 6) |
| 5. court mandates verification of tax credit claim. (Para 17 , 19) |
| 6. writ petition disposed of as directed. (Para 20) |
JUDGMENT :
MANISH CHOUDHURY, J.
1. Heard Mr. R.S. Mishra, learned counsel for the petitioner and Mr. H. Baruah, learned counsel representing Mr. B. Gogoi, learned Standing Counsel, Finance & Taxation Department for all the respondents.
2. The petitioner has instituted the instant writ petition under Article 226 of the Constitution of India on being aggrieved by alleged inaction on the part of the respondent authorities in verifying the claim of the petitioner regarding Transitional Input Tax Credit, as submitted by the petitioner already in Tran-1, on 28.11.2022.
3. The petitioner has stated that he has been in the business of trading in hardware goods and other ancillary items and he carries on business in the name and style of his sole proprietorship firm
The court affirmed the right to Transitional Input Tax Credit under Section 140 and mandated timely verification of claims without delay caused by technical issues.
The entitlement to Input Tax Credit cannot be denied on account of procedural problems and technical glitches.
The court allowed the petitioner to correct their tax credit submissions based on a bona fide error, emphasizing the need for leniency to avoid unjust taxation.
Input Tax Credit is a property right; denial due to clerical errors is unjustified, emphasizing necessity for the taxpayer to correct mistakes without losing entitled benefits.
The main legal point established in the judgment is that unutilized input tax credit is a vested right and property, and should not be denied on procedural or technical grounds.
The main legal point established in the judgment is that the court allowed the petitioner to file concerned forms for availing Transitional Credit through TRAN-1 and TRAN-2 for a specific period, in ....
The requirement to submit TRAN-1 for claiming transitional credit under Section 140 of the CGST Act, 2017 is mandatory and cannot be bypassed.
The court established that procedural timelines should not infringe upon vested rights to claim tax credits, especially in light of technical challenges faced by taxpayers.
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