Shardaben Jayantilal Patel Vs Union of India (Gujarat High Court)
The Gujarat High Court has intervened in a case involving a manufacturing firm, Shardaben Jayantilal Patel (M/s. Jai Electrical Industries), directing tax authorities to reconsider its claim for transitional credit under Section 140(1) of the Central Goods and Service Tax (CGST) Act, 2017. The firm asserted that its claim for CENVAT credit from the pre-GST regime was not reflected in its electronic credit ledger due to technical glitches in the GSTN system, despite timely submission of the GST TRAN-1 form.
M/s. Jai Electrical Industries, a manufacturer of electrical motors and pumps, was previously registered under the Central Excise Act, 1944, before migrating to the GST regime on July 1, 2017. The firm claimed an eligible CENVAT credit of ₹8,35,435, which was duly reflected in its ER-1 return for June 2017, filed on July 10, 2017. In accordance with Section 140 of the CGST Act, the firm sought to carry forward this credit into its electronic credit ledger. To facilitate this, the company submitted its declaration in Form GST TRAN-1 within the stipulated deadline of December 27, 2017, and stated that it had complied with all other conditions for claiming such transitional credit.
