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Petitioner |
Madurai Krishna Network (P) Ltd. |
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Respondent |
CGST & CE |
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Decision by |
Madras High Court |
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Date of Order/Judgement |
21-April- 2022 |
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Citation No. |
2022 (4) GSTPanacea 2 HC Madras W.P(MD). No. 1095 of 2022 |
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Hon’ble Judge |
Justice Saravanan |
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Decision |
In Favour of Assessee |
Form TRAN-1 Not In Dispute-Unutilized ITC shall be allowed either by way of corresponding credit entry in the electronic cash register of the petitioner or by way of cash refund within 45 days from the date of receipt of copy of this order.
Form TRAN-1 Not in Dispute-Facts of the Case
The petitioner is a Private Limited Company and is primarily engaged in the business of operating Satellite Channels in India having substantial input tax credit in earlier regime of service tax, which remain unutilized.
The petitioner attempted to transitioned under the new regime of GST in TRAN-1 Form on 4-10-2017, which was accepted by Dept. and further dept. on 17-06-2018 asked to provide details of the screenshot of the credit ledger with debit credit entries (in PDF/JPEG page).
Against the above request The petitioner submitted replies by email on 19-06-2018 by attaching the asked documents and casually mentioned that a total of 50 Lakh rupees ITC is available under service tax.
In response GST Dept. mailed the petitioner on 28-06-2018 stating that they do not received any reply for requested documents( screenshots ) .
On the above ground Dept. does not provide the transition benefit of ITC from Service tax to GST because petitioner not able to file return before the cut off date.
Argument Before Court
Form TRAN-1 Not in Dispute-Petitioner’s Contention
The petitioner has sent a Letter, dated 6-1-2020 by stating that the petitioner was a Service Tax registered under Service Tax had a credit of Rs. 37,83,380 and the same was attempted to be in transitioned through TRAN-1 in new registration but the amount has not been shown in the ledger under the new regime.
Form TRAN-1 Not in Dispute-Respondent’s Argument
The respondent ( Dept. ) argued that as per Goods and Service Tax Rule 117 (1A) the due date for filing TRAN-1 was available only for those who could not file due to technical difficulties after the recommendation of the Goods and Service Tax council on 31-3- 2019 and the request sent after due date would not be considered for further processing.
The respondents submits that the petitioner was causal and has not clearly stated what was the credit amount lying unutilised in their account under the provisions of the CENVAT Act, 2004 read with Finance Act, 1994.
Madras High Court Held
The fact that the petitioner has uploaded the relevant Form in Form TRAN-1 is not in dispute as it has been acknowledged by the Commercial Tax Department Tamil Nadu on 4-10- 2017. It cannot be said that the petitioner has not uploaded the TRAN-1 as it has been acknowledged by the Commercial Tax Department Tamil Nadu.
HC does not find any justification in the stand of the respondent in not allowing the credit to be utilised. If such credit existed as on 30- 6-2017, being the last date after which the Goods and Services Tax regime was in place, credit should be allowed.
HC disposed of the petition by directing the dept. to ascertain from the Service Tax Returns filed by the petitioner whether prior to the implementation of the GST whether ITC remained unutilized, which according to the petitioner amounts to Rs.37,83,380, the same shall be allowed either by way of corresponding credit entry in the electronic cash register of the petitioner or by way of cash refund within 45 days from the date of receipt of copy of this order.
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Madurai Krishna Network P Ltd.
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Madras High Court