Case Law Details
Sri Renga Timbers Vs Assistant Commissioner (ST) (FAC) (Madras High Court)
In a recent judgment, the Madras High Court in M/s. Sri Renga Timbers v. The Assistant Commissioner (ST) (FAC) [W.P. No. 22854 of 2023 dated August 17, 2023] addressed the issue of whether credit could be denied to an assessee who had mistakenly filed the TRAN-1 returns twice. The case involved M/s. Sri Renga Timbers and the Assistant Commissioner (ST) (FAC). HC quashed the order passed by the Adjudicating Authority and held that the credit that was validly availed cannot be denied, even if there were mistakes in the TRAN-1 returns filed twice. The court’s decision has significant implications for taxpayers and tax authorities alike.
Facts:
M/s. Sri Renga Timbers (“the Petitioner”) was earlier registered under Tamil Nadu Value Added Tax Act, 2006 (“the TNVAT Act”), with the implementation of GST the Petitioner filed FORM TRAN-1 under Section 140 of the Central Goods and Services Tax Act, 2017 (“the CGST Act”) to transmit the Input Tax Credit (“ITC”) lying unutilized with the Petitioner as on June 30, 2017 to GST regime.
The Petitioner transferred the ITC on the stock of inventory of locally purchased taxable goods valued at INR 6,19,89,648/- and declared the ITC carried forward at the end of the month INR 89,88,498/- in the returns filed for the month of June 2017.
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