Order of Denial of Transitional Credit Without Providing Reasons for Such Denial to be Set Aside | Madras HC

Case Details: Alutec Facades India (P.) Ltd. v. Assistant Commissioner (ST) - [2023] 155 taxmann.com 161 (Madras)

Judiciary and Counsel Details

• C. Saravanan, J.
• S. Lakshmi Narayanan for the Petitioner. 
• T.N.C. Kaushik for the Respondent.

Facts of the Case

The petitioner migrated from Tamil Nadu Value Added Tax Act to GST Act and filed TRAN-1 return wherein excess tax was carried forward to electronic credit ledger as state tax. The department passed an order alleging that Input Tax Credit (ITC) was wrongly transmitted by petitioner. It approached the High Court against the order and contended that there was no discussion in the impugned order while denying the amount of ITC.

High Court Held

The Honorable High Court noted that the excess tax was carried forward to ECL as state tax in TRAN-1 by the petitioner and the same denied by the department but there was no clear discussion in impugned order as to which provision had been referred while denying carry forward of ITC. Also, there was no discussion in impugned order while denying amount of ITC that was allegedly wrongly transmitted by petitioner in TRAN-1. Therefore, the Court held that the impugned order was liable to be set aside and the case was remitted back to pass a fresh order on merits.