The Andhra Pradesh High Court ruled that after the Apex court allowed reporting of the GST portal for filing the transitional credit declarations, benefits could not be trimmed via the department restrictions. The right of the applicant has been kept by the court to submit TRAN forms in the said window and set aside the rejection of transitional credit.
The applicant, Mahavir Auto Diagnostics Private Limited, having relocated to the Goods and Services Tax regime on 01.07.2017, was qualified to transition to excise duty-paid credit u/s 140 of the Central Goods and Services Tax Act, 2017.
The applicant had filed Form TRAN-1 but did not upload Form TRAN-3. A show-cause notice was issued dated 14.01.2020, and the Superintendent of Central Tax passed an order dated 10.02. 2023, reversing the transitional credit. Against this order, the appeal was dismissed dated 30.11.2023.
The Supreme Court in Union of India vs. Filco Trade Centre Pvt. Ltd. (2022) directed the reopening of the GST portal from 01.09.2022 to 31.10.2022, and this period was extended to 30.11.2022. The applicant took the benefit of this extension and filed the required TRAN forms dated 29.11.2022.
The department has rejected the forms based on the Circular No. 180/12/2022-GST dated 09.09.2022. The authorities clarified that since adjudication for the transitional credit was initiated previously, refilling of TRAN forms was not allowable.
The bench, including Justice R. Raghunandan Rao and Justice Sumathi Jagadam, ruled that a circular cannot be utilised for refusing the benefit awarded under the Supreme Court’s directions. The High Court said that the applicant did not adhere to the Supreme Court-mandated filing window and that rejection based on the circular was unexplained.
Read Also: Transitional Credit Inapplicable for Capital Goods Received After GST Implementation
As per that, the order in the original on 25.09.2023 and Order-in-Appeal dated 30.11.2023 were set aside. Therefore, the authorities were asked to authorise the transition of credit to the GST Act.
| Case Title | Mahavir Auto Diagnostics Pvt. Ltd. vs. Additional Commissioner of Central Tax |
| Case No. | Writ Petition Nos: 14494 & 14496 of 2024 |
| For the Petitioner | Pasupuleti Venkata Prasad |
| For the Respondents | P S P Suresh Kumar |
| AP High Court | Read Order |
