Pyramid Infratech Co Vs Union of India (Bombay High Court)
Transitional CENVAT Credit Cannot Be Denied Merely Due to Belated ST-3 Returns When Service Tax Payment Is Established
The petitioner is engaged in construction and sale of buildings/flats. CIDCO leased (long term lease) a plot of land to the petitioner. It charged service tax thereon. The petitioner claimed credit. The said credit was transitioned into the GST regime by filing Trans-1 Form under section 140 of the Act. The said credit of over Rs.4.5 crores was denied on the ground that the petitioner filed belated ST-3 returns and hence; was not eligible. An appeal was filed. Appellate authority also confirmed the same. Hence; petition was filed.
The Hon’ble Bombay High Court set aside the orders and allowed the petition. It held: (i) CIDCO had filed a certificate that it had paid service tax to the government; the same was not appreciated by the authorities; (ii) petitioner also placed on record a receipt issued by CIDCO to the petitioner showing payment of service tax; (iii) the payment could not have been ensured by the petitioner; (iv) hence; remands the matter to the appellate authority to consider the said documents.
Argued by Adv. Bharat Raichandani i/b UBR Legal
