Interesting case on Transitional credit if Input tax credit on the basis of documents evidencing payment of duty
2019 TaxPub(GST) 0183 (Guj-HC)
Downtown Auto (P.) Ltd. v. Union of India
CENTRAL GOODS AND SERVICES TAX ACT, 2017
Overview :
Where assessee sought relief in respect of input tax credit and inviting attention of Court to provisions of section 140 submitted that no documents had been prescribed under CGST Rules and when it had produced documents evidencing payment of duty, it was entitled to credit in respect thereof, notice was issued to GST Authorities.–Assessee sought relief in respect of input tax credit and referring to clause (iii) of sub-section (3) of section 140 submitted that the same provides that the said registered person should be in possession of invoice or other prescribed documents evidencing payment of duty under the existing law in respect of such inputs. No documents had been prescribed under Central Goods and Services Tax Rules till now and under the circumstances when it had produced documents evidencing payment of duty, it was entitled to the credit in respect thereof. Held: Having regard to the submissions advanced by assessee, it was directed to issue Notice returnable on 27-2-2019. By way of ad-interim relief, Revenue were restrained from making any coercive recovery against assessee in connection with the subject-matter of this petition.
Central Goods and Services Tax Act, 2017 Section 140
REFERRED :
FAVOUR : Notice issued
A.Y. :
IN THE GUJARAT HIGH COURT
HARSHA DEVANI & A.P. THAKER, JJ.
Downtown Auto (P.) Ltd. v. Union of India
R/Special Civil Application No. 2409 of 2019
6 February, 2019
Matter pending.
Appellant by: Uchit N. Sheth
JUDGMENT
Harsha Devani, J.
Mr. Uchit Sheth, learned advocate for the petitioner has invited the attention of the court to the provisions of section 140 of the Central Goods and Services Tax Act, 2017 and more particularly sub-section (3) thereof, which inter alia provides that a registered dealer as described therein, a first stage dealer or a second stage dealer or a registered importer or a depot of a manufacturer, shall be entitled to take credit of eligible duties in respect of inputs held in stock on the appointed day, subject to the conditions enumerated thereunder. It was submitted that all the five conditions enumerated under sub-section (3) of section 140 of the Act are satisfied by the petitioner. Referring to clause (iii) of sub-section (3) of section 140 of the Act, it was submitted that the same provides that the said registered person should be in possession of invoice or other prescribed documents evidencing payment of duty under the existing law in respect of such inputs. It was submitted that in the facts of the present case, no documents have been prescribed under the Central Goods and Services Tax Rules; under the circumstances, when the petitioner has produced documents evidencing payment of duty, he is entitled to the credit in respect thereof.
2. Having regard to the submissions advanced by the learned advocate for the petitioner, Issue Notice returnable on 27-2-2019. By way of ad-interim relief, the respondents are restrained from making any coercive recovery against the petitioner in connection with the subject matter of this petition.
Direct Service is permitted qua respondent No. 2 only.
