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2024 Supreme(Online)(KER) 4133
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH MONDAY, THE 25TH DAY OF MARCH 2024 / 5TH CHAITHRA, 1946 WP(C) NO. 2595 OF 2024 PETITIONER/S:
HABEEB RAHMAN, AGED 56 YEARS PROPRIETOR, SMILE COAT, XX/97 NEAR MARTHOMA CHURCH, KANGARAPPADI KALAMASSERY, PIN - 682021 BY ADVS.
LAL K.JOSEPH T.A.LUXY P.MURALEEDHARAN (THURAVOOR) SURESH SUKUMAR ANZIL SALIM SANJAY SELLEN RESPONDENT/S:
1 STATE OF KERALA , REPRESENTED BY SECRETARY TO GOVERNMENT, TAXES DEPARTMENT SECRETARIAT, THIRUVANANTHAPURAM, PIN - 695001 2 THE COMMISSIONER OF STATE TAX , SGST DEPARTMENT,TAX COMPLEX, KARAMANA,THIRUVANANTHAPURAM, PIN - 695002 GOVERNMENT OF INDIA, REPRESENTED BY SECRETARY,MINISTRY OF FINANCE,DEPARTMENT OF REVENUE ,CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS ,GST POLICY WING,NEW DELHI, PIN - 110001 THE STATE TAX OFFICER, 3 RD CIRCLE,THRISSUR , NOW RE DESIGNATED AS TAX PAYER SERVICE CIRCLE, THRISSUR CITY, PIN - 680020 5 THE SUPERINTENDENT , CENTRAL TAX AND CENTRAL EXCISE,CHEMBUKKAVU RANGE,THIRSSUR DIVISION, C R BUILDING,ST NAGAR., PIN - 680001 6 THE STATE TAX OFFICER , SGST DEPARTMENT,TAX PAYER SERVICE CIRCLE, THRIKKAKKARA AT CIVIL STATION KAKKANAD, PIN - 682030 7 THE SUPERINTENDENT , CENTRAL TAX AND CENTRAL EXCISE, KAKKANAD RANGE II,, PIN - 682017 BY ADV SREEJITH P. R
OTHER PRESENT:
SMT. JASMIN M.M.-GP THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 25.03.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
The eligibility for transitional credit under Section 140(3) of the CGST/KSGST Act is subject to verification by the Central GST Authorities.
Headnote:
GST - TRANSITIONAL CREDIT - ELIGIBILITY - [Section 140(3) of CGST/KSGST Act]
Fact of the Case:
The petitioner filed a writ petition seeking to quash the impugned order passed by the 6th respondent, which rejected the petitioner's claim for transitional credit under Section 140(3) of the CGST/KSGST Act. The petitioner had filed a GST TRAN 1 declaration in the GSTN portal on 20.11.2017, claiming transitional credit of Rs.1,89,330/-. However, the 6th respondent, after verification, found that the petitioner was eligible to avail ITC of only Rs.1,79,769/-.
Finding of the Court:
The court found that the Central GST Authorities had found the petitioner to be eligible to avail ITC of Rs.1,79,769/- through their Tran-1 application. Therefore, the court set aside the impugned order and remitted the matter back to the 6th respondent to pass fresh orders considering the report of verification submitted by the 7th respondent, expeditiously, in accordance with the law.
Issues: Whether the petitioner is eligible for transitional credit claimed under Section 140(3) of CGST/KSGST Act as per GST TRAN 1 declaration filed in GSTN portal on 20.11.2017.
Ratio Decidendi: The court held that the petitioner is eligible to avail ITC of Rs.1,79,769/- through their Tran-1 application, as per the report of verification submitted by the 7th respondent.
Final Decision: The court set aside the impugned order and remitted the matter back to the 6th respondent to pass fresh orders considering the report of verification submitted by the 7th respondent, expeditiously, in accordance with the law.
The present writ petition under Article 226 of the Constitution of India has been filed seeking the following reliefs:
- “i) Issue a writ of certiorari or any other appropriate writ or order quashing Ext.P11 proceedings. ii) Declare the petitioner eligible for transitionary credit claimed under Section 140(3) of CGST/KSGST Act as per GST TRAN 1 declaration filed in GSTN portal on 20.11.2017. iii) Pass such other orders which this Honourable Court may deem fit in the facts and circumstances of the case.”
2. Sri Sreejith P R learned Counsel appearing for respondents nos.5 and 7 submits that the Central Goods and Service Tax Authorities have carried out the verification regarding the petitioner’s eligibility for Tran-1 credit. In the statement filed on behalf of the respondents it has been stated:
- “2. Verification of Transitional credit availed by the Taxpayer was done as per the copies of documents (Copies of Invoices on which ITC has been taken, GST opening stock and chart showing the amount claimed) received from R.O, Chembukkavu Range via mail dated, 22.02.2024. The mail received from R.O, Chembukkavu Range, it was informed that no originals of the said documents had been submitted to the Range Office by the Taxpayer.
3.Verification of the documents revealed that out of Rs.1,89,330/- , the Taxpayer is eligible to avail ITC of Rs.1,79,769/- through their Tran -I application. Hence, an amount of Rs.1,79,769/- is found to be eligible and the balance amount of Rs.9561/- is rejected.”
3. Considering the fact that the Central GST Authorities have found the petitioner to be eligible to avail ITC of Rs.1,79,769/- through their Tran-1 application, the impugned order is set aside and the matter is remitted back to the 6th respondent to pass fresh orders considering the report of verification submitted by the 7th respondent, expeditiously, in accordance with the law.
The writ petition stands disposed of.
