2026-VIL-199-GSTAT-KLK
  1. Home
  2. 2026-VIL-199-GSTAT-KLK

SGST Tribunal

GST - Transitional credit under Section 140(1) of CGST Act, 2017 - Excess credit claimed in Table 5(a) of TRAN-1 over the closing balance in the last return under the existing law - Taxpayer explained that input service credit was inadvertently not reported and that the revised return was not accepted by the portal - Adjudicating Authority held the excess credit ineligible - The first appellate authority allowed the appeal on the footing of a procedural lapse - Whether the difference in transitional credit requires verification and the first appellate order can be sustained - HELD - It was undisputed that the credit shown in Table 5(a) of TRAN-1 exceeded the closing balance of CENVAT credit as per the ER-1 and ST-3 returns filed under the existing law. The difference requires thorough verification by the authorities concerned. The Respondent is directed to produce all relevant records without delay - The case is remanded to the Proper Officer/Adjudicating Authority only for this limited purpose, to pass a reasoned order on the basis of the verification.rnrn rnrnGST - Section 74(1) of CGST Act - Invocation of extended period on allegation of wilful mis-statement or suppression of facts - Taxpayer filed the TRAN-1 return more than once and informed the department of the mistake later - Adjudicating Authority held that the taxpayer wilfully suppressed information with mala fide intention to evade payment of tax - Whether notice under Section 74(1) is sustainable - HELD - Mere wrong or incorrect information does not, ipso facto, establish charges of wilful mis-statement. Section 74(1) can be invoked only where there is fraud or wilful mis-statement or suppression of facts to evade tax, as stated in Instruction No. 05/2023-GST. Such evidence should also be made a part of the show cause notice. Suppression of facts must be construed strictly and cannot be equated with ordinary non-declaration. It does not mean any omission, and the act must be deliberate and wilful to evade payment. Applying the ratio of the Tribunal's earlier decision in Power Tech Global, the charges of wilful mis-statement or suppression of facts were not established - The notice issued under Section 74(1) is not sustainable.
Download File

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Tax Vista

Your Weekly Tax Recap

By Dr. G. Gokul Kishore

Weekly Summary

VIL Video

GST & Customs updates: Sep'26
By CA Vivek Jalan

Create Account

Security-Code
New Code?

Log In

New User ? Forgot Password ?

Forgot Password

Security-Code
New Code?
Please Note: This facility is only for Subscribing Members.

Email this page

Security-Code
New Code?

Feedback this page

Schedule a Demo

Schedule a demo to know the features and advantages of VILGST portal. Get to know the tips to find the desired results in faster way.

Security-Code
New Code?

Caselaw Request Form (CRF)

Didn’t find what you are searching for? No worries, please give us the following details and VIL will email you the desired Caselaws at the earliest:

Security-Code
New Code?