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2024 Supreme(Online)(Mad) 57228
IN THE HIGH COURT OF JUDICATURE AT MADRAS
Hon`ble Mr.Justice C.SARAVANAN
M/s.Greenstar Fertilizers Li – Appellant
Versus
The Joint Commissioner (Appe – Respondent
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED : 11.06.2024 CORAM THE HON'BLE MR.JUSTICE C.SARAVANAN W.P.(MD)No.26254 of 2022 and W.M.P.(MD)Nos.20437and 20438 of 2022 M/s.Greenstar Fertilizers Limited, Rep. by its Chief Operating Officer, E.Balu, No.35, SPIC Nagar, Muthaiahpuram Post, Tuticorin- 628 005. ... Petitioner Vs.
1.The Joint Commissioner (Appeals), Office of the Commissioner of GST and Central Excise (Appeal), Coimbatore Circuit Office, Madurai, No.4, Lal Bahadur Shashtri Marg, C.R.Buildings, Madurai – 2.
2.The Assistant Commissioner of GST and Central Excise, Tuticorin Division, C-50, SIPCOT Industrial Complex, Tuticorin - 628 008. ... Respondents Prayer: Writ Petition filed under Article 226 of Constitution of India for issuance of a Writ of Certiorari, to call for the records pertaining to the Order-in-Original No.02/2021-GST in GEXCOM/ADJN/GST/374/2021- O-CGST-DVN-TTN dated 31.12.2021 DIN No. 20211259XO000000D6BD, passed by the second respondent and consequently, the Order-in-Appeal No.A.Nos.21/2022-GST DIN No. 20220859KV0000717702 dated 17.08.2022, passed by the first respondent and quash the same insofar as it relates to levy of penalty.
For Petitioner : Mr.S.Ganesh For Respondents : Mr.N.Dilipkumar Standing Counsel
O R D E R
The petitioner has challenged the impugned order passed by the first respondent in A.No.21/2022-GST, dated 17.08.2022.
2. By the impugned order, the appeal filed by the petitioner against the order of the second respondent in Order-in-Original No.OIO.No. 02/2021-GST in GEXCOM/ADJN/GST/374/2021 O-CGST-DVN-TTN dated 31.12.2021 (Corrigendum dated 24.03.2022 in GEXCOM/ADJN/GST/374/2021 O-GST-DVN-TTN) has been rejected.
3. By the aforesaid Order-in-Original No.OIO.No.02/2021-GST in GEXCOM/ADJN/GST/374/2021 O-CGST-DVN-TTN dated 31.12.2021, the proposals contained in the show cause notice No.11/2021(AC), dated 26.07.2021, were confirmed. The petitioner appears to be a Central Excise Assessee under the provisions of the Central Excise Act, 1944 r/w. Central Excise Rules, 2002. With the implementation of GST with effect from 01.07.2017, the petitioner transitioned various amounts as input tax credit under Section 142 of the CGST Act, 2017, as detailed below.
S.No.
Particulars of wrong availment of Transitional Credit
Amount availed (Rs.)
Amount Reversed (Rs.)
Date of reversal
1
Wrong availment of transitional credit on input held in stock on the premises located in Andhra Pradesh
9,46,567
9,46,567
08.12.2021 i.e., after issuance of SCN
2
Wrong availment of transitional credit in Trans-1 return without support of prescribed documents
6,67,649
2, 87, 630 1,20,670
08.12.2021 i.e., after issuance of SCN 09.12.2021 i.e., after issuance of SCN
3
Wrong availment of excess transitional credit than that available as per prescribed documents
2,91,467
2,91,467
08.12.2021 i.e., after issuance of SCN
4
Wrong availment of ineligible transitional credit on excise duty paid on capital goods by wrongly classifying them as inputs
11,27,932
11,27,932
16.12.2020 before issuance of SCN
Total
30,33,615
27,74,266
4. The petitioner has reversed a sum of Rs.11,27,932/- before the issuance of the above mentioned show cause notice dated 26.07.2021. Under these circumstances, the second respondent had earlier confirmed the penalty and interest on the petitioner as under:-
“i) I demand an amount of Rs.9,46,567/- (Rupees nine lakh forty six thousand five hundred and sixty seven only) from M / s Greenstar Fertilizers Ltd, Tuticorin, mentioned in Para 9 above, being the amount of ineligible transitional credit availed and carried forward in 7A of Table 7(a) in Tran-? Return on inputs not held in stock in their registered place of business on the appointed day, under Section 74(1) of the CGST Act, 2017 read with Rule 121 of the CGST Rules, 2017;
ii) I demand an amount of Rs.4.08,300/- (Rupees four la
