JMD Alloys Ltd Vs Union of India (Patna High Court)
Patna High Court held that input tax credit in GST regime is not admissible in relation to duty paid on capital goods in transit before appointed date. Accordingly, writ petition dismissed.
Facts- The petitioner is a public limited company incorporated under the provisions of the Companies Act, 1956. It is engaged in manufacturing business of MS-Bars and maintains its account on the basis of mercantile/accrual system.
In the month of June, 2017, the petitioner placed order to the registered suppliers for supplying a few contactable/excusable goods of capital nature which were required to be used in the factory of the petitioner for the manufacturing of final conceivable excitable produce. Eleven different suppliers sent consignment of the requisite contactable/excitable goods without indicating their respective nature of use to the petitioner’s factory premises under cover of eleven different tax invoices, altogether charging CENVAT duty, amounting to Rs. 8,62,566/- on the various dates in the month of June 2017.
The petitioner filed TRAN-1 on 20.09.2017 in his GSTIN ID and claimed all the admissible components of CENVAT credit. The jurisdictional Range Superintendent (respondent no. 4) informed the petitioner that during TRAN-1 verification against his claim of Rs. 2,19,18,000/-, it has been found that there was ineligible credit of Rs. 8,62,566/- against his claim in Table No. 6(a) of TRAN-1 against capital goods in transit.
