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GST - Scope and ambit of Section 140 of CGST Act, 2017 – Transfer of Transitional credit by the branch to Registered office having centralised registration - petitioner is having centralised registration in the State of Maharashtra and its branch in the State of Telangana - petitioner made efforts to file GST TRAN-1 on GST portal of Maharashtra, but because of technical glitch could not file its return in the Maharashtra portal – Petitioner filed the TRAN-1 in the portal of Telangana and took the credit and transferred it on the same day to the portal of Maharashtra – whether the petitioner which is Registered in Maharashtra, but could not file TRAN-1 in GST portal of Maharashtra and filed it in the GST portal of Telangana can be saddled with demand, penalty and interest when its branch exists in the State of Telangana and the credit taken by petitioner was transferred to Maharashtra portal on the same day – HELD - The electronic credit ledger establishes that petitioner has not utilised the credit in Telangana State and in fact, the credit was debited from ECL on the very same day – as per Section 140 (1) of the CGST Act the petitioner is entitled to take, in its electronic credit ledger, the amount of eligible CENVAT credit. Undisputedly, the registration number / PAN of the petitioner is same nationwide. Thus, sub-section (1) of Section 140 does not permit the Revenue to arrive at a conclusion that the petitioner was obliged to file return electronically only in the GST portal of Maharashtra - So far as sub-section (8) of Section 140 of the Act is concerned, a registered person having centralised registration under the existing law (Service Tax Law) having obtained a registration under the GST Act, such person shall be allowed to take in his electronic credit ledger, credit of the amount of CENVAT credit carried forward in a return furnished under the existing law, in respect of the period ending with the day immediately preceding the appointed day - The last proviso to sub-section (8) of Section 140 of the CGST Act leaves no room for doubt that the credit may be transferred to any of the registered person having same PAN number for which the centralised registration was obtained under the existing law. The filing of return in the GST portal of Telangana and transfer of credit is squarely covered and permissible under the last proviso to sub-section (8) of Section 140 – Further, it was the duty of the Department to keep their portal functional. If the portal was not functional or having technical glitch and because of that the petitioner was compelled to file return in the portal of Telangana, the petitioner cannot be saddled with demand, interest and penalty. In other words, the Department cannot take benefit of its own wrong - the very foundation of show cause notice itself is bad in law and the assumption of respondent that Return could not have been filed in the GST portal of Telangana is not flowing from Section 140 of the Act – the impugned orders are set aside and the writ petition is allowed
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