Pinnacle Motor Works Private Limited Vs Deputy Commissioner (Adjudication) (Kerala High Court)
The petitioner, a private limited company registered under the CGST/SGST Acts, challenged the denial of transitional input tax credit (ITC) under Section 140 of the CGST Act. Initially, on 27.12.2017, the petitioner filed TRAN-1 and TRAN-2 forms to carry forward credit from the Kerala Value Added Tax Act and the Central Sales Tax Act into the GST regime. In the original TRAN-1, the petitioner claimed ₹88,04,678.87, and in TRAN-2, ₹2,01,681.
Following a Supreme Court judgment permitting revision of TRAN-1/TRAN-2 up to 30.11.2022, the petitioner filed revised forms on 29.10.2022. In the revised TRAN-1, only ₹6,84,886 was shown, and in TRAN-2, the credit was shown as nil. According to the petitioner, this occurred due to a bona fide misunderstanding that the revised forms were meant only for additional claims and that earlier claimed amounts need not be restated.
The authorities rejected the claim on the ground that the petitioner failed to produce necessary invoices. Although the earlier TRAN-1 and TRAN-2 amounts were referenced, the revised filings were treated as nullifying the original claims. The petitioner’s earlier writ petition challenging the rejection was dismissed. Subsequently, an assessment under Section 73(9) of the CGST Act denied the transitional credit of ₹88,04,680 (TRAN-1) and ₹2,01,681 (TRAN-2) claimed in 2017. The petitioner filed the present writ petition challenging this assessment order and consequential demand.
