HC restrains Revenue from recovery proceedings in respect of ISD transitional credit

The Petitioner was registered as an ISD under the pre-GST regime and transited CENVAT Credit lying in its Electronic Credit Ledger into GST regime. The Revenue initiated recovery proceedings in respect to such credit. The HC took note of the judgements of Bombay HC, wherein the ISD CENVAT credit has been allowed to be transitioned in absence of a definite procedure. Accordingly, HC restrained the Revenue from proceeding with any recovery.

Hero Motocorp Limited [2022-VIL-719-DEL]

GLS Comments:

The Bombay HC in RE: Unichem Laboratories Limited [Writ Petition No. 109 of 2020], while relying to SC’s judgement in RE: Filco Trade [2022-TIOL-57-SC-GST], directed the Petitioner to file or revise GST TRAN-1 through their respective units registered under CGST Act. It was further held that the same will be basis the manual ISD invoices issued by the ISD of petitioner subject to aggregate credit. The HC further directed the CBIC to issue a clarification, after due deliberation, in relation to the distribution / reporting of ISD credit. However, the CBIC is yet to issue any such clarification.

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