Bombay HC directed dept. to allow filing of TRAN-1 form for availing transitional ISD Credit

Case Details: Colgate Palmolive (I.) Ltd. v. Union of India - [2022] 142 taxmann.com 18 (Bombay)

Judiciary and Counsel Details

• • K.R. Shriram & A.S. Doctor, JJ.
  • Jitendra Motwani, Chirag Shetty & Rizwan Khatri for the Petitioner.
  • Ram Ochani for the Respondent.

Facts of the Case

The petitioner had filed declaration from ISD registration on GST common portal in Form GST TRAN-1 for transitioning credit. A show cause notice was issued to petitioner alleging that petitioner had wrongly transitioned balance of ISD credit in Form GST TRAN-1. The department contended that ISD was not eligible to directly carry forward its balance credit to electronic credit ledger under Section 140(1). The petitioner filed writ petition against the same.

High Court Held

The Honorable High Court noted that the entire dispute only pertains to procedure for transition of CENVAT credit being balance of ISD credit and its distribution to other units of petitioner. In view of the order of Hon’ble Supreme Court of India in Filco Trade, the department was directed to open common portal for filing concerned form for availing transitional Credit through TRAN-1 and TRAN-2. The Court also directed that the authorities concerned shall not proceed to adjudicate the impugned show cause notice issued to petitioner for transition of ISD credit balance.