The Petitioner being a registered in erstwhile tax regime had carry forwarded their CENVAT credit under GST regime by filing GST TRAN-1. The Adjudicating Officer issued a SCN asserting that the Petitioner cannot claim CENVAT credit in lieu of invoices raised by an entity in the erstwhile tax regime in contravention to the Excise Act, Finance Act, and CENVAT Credit Rules. Thereafter, the Department by adjudication proceedings initiated u/s 73 of the CGST act and disallowed the CENVAT credit in terms of sec 140 of the CGST Act by order. Aggrieved, the Petitioner preferred a Writ seeking relief on whether the GST Authorities can assess the admissibility of CENVAT credit availed under the pre-GST regime?
The HC observed that the assumption of jurisdiction by Department to determine whether the CENVAT Credit was admissible or not under the existing law by invoking provisions of sec 73 of the CGST Act was not proper in the eye of law. Therefore, initiation of proceedings u/s 73 (1) of the CGST Act for contravention of the Excise Act and the Finance Act was beyond the authorities’ jurisdiction. Accordingly, the High Court quashed the said order.
Usha Martin Limited [TS-609-HC(JHAR)-2022-GST]
Disclaimer:
The information provided in this update is intended for informational purposes only and does not constitute legal opinion or advice. Readers are requested to seek formal legal advice prior to acting upon any of the information provided herein. This update is not intended to address the circumstances of any particular individual or corporate body. There can be no assurance that the judicial/ quasi judicial authorities may not take a position contrary to the views mentioned hereinrra quis.
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