Case Law Details
Assistant Commissioner of GST & Central Excise Vs Ganges International Private Limited (Madras High Court)
High Court held that carry forward of service tax eligible for CENVAT in erstwhile regime cannot be denied for late payment can be denied under GST due to Transitional Period and inability of the petitioner to claim through filing FORM GST TRAN 1.
It is an admitted fact that the assessee is eligible to claim cenvat credit under the erstwhile Central Excise Act, prior to 30.06.2017, but they were unable to claim, due to transitional provision has come into effect from 01.07.2017. It is also not in dispute that they had paid the service tax for the period from April 2017 to June 2017 belatedly i.e., on 02.05.2018, after pointing out the same through departmental audit. Thereafter, the assessee filed an application for refund. The appellant rejected the claim of refund made by the assessee on the premise that there is no provision in the new regime to allow such refund as input tax credit in GST/credit in Electronic cash ledger/ payment in cash. The said order was put to challenge by the assessee by filing WP.No.528 of 2019. After considering the case of the asseesee, the learned Judge was of the view that merely because the transitional provision has come into effect from 01.07.2017, the chance of making an application under section 140(1) to seek the refund or otherwise of the credit, which was subsequently accrued in the account of the assessee, cannot be denied. Observing so, the learned Judge ordered the said writ petition, by setting aside the order rejecting the claim of refund made by the assessee and remanding the matter to the appellant for fresh consideration.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
This appeal is filed by the appellant / Revenue, assailing the order of the learned Judge dated 22.02.2022 passed in WP.No.528 of 2019.
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