SCN quashed by Bombay HC for allegedly availing inadmissible transitional credit as has been issued on an erroneous legal premise

Godrej & Boyce Mfg. Co. Ltd. Vs Union of India and Ors. (Bombay High Court)

SCN quashed by Bombay HC for allegedly availing inadmissible transitional credit as has been issued on an erroneous legal premise

The Hon’ble Bombay High Court (Bombay HC) in the matter of Godrej & Boyce Mfg. Co. Ltd. v. Union of India and Ors. [WRIT PETITION NO. 3226 OF 2019 dated October 29, 2021], quashed the Show Cause Notice for allegedly availing inadmissible transitional credit worth Rs.3.83 Crores as it has been issued on an erroneous legal premise.

Godrej & Boyce Mfg. Co. Ltd. (the Petitioner) filed the petition dated November 14, 2019 in which the Petitioner has mounted a challenge to a show cause notice dated August 27, 2019 issued by the Joint Commissioner, CGST & C.Ex, Navi Mumbai. It has been alleged in such notice that the Petitioner availed inadmissible transitional credit amounting to Rs.3.83 crores. Further the Petitioner contended that the impugned notice proceeds on the footing that the transitional arrangement for taking Input Tax Credit in the cases of CESS such as Education Cess, Secondary & Higher Education Cess and Krishi Kalyan Cess has been taken away by a retrospective amendment in the GST Law. However, the Petitioner claims that even on the date, this writ petition was presented, the amendment(s) referred to in the impugned notice had not come into force and, therefore, the impugned notice has been issued on an untenable legal premise. Hence it is without jurisdiction.

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