2026-VIL-256-GSTAT-CHD
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  2. 2026-VIL-256-GSTAT-CHD

SGST Tribunal

GST - Transitional credit - Availment of entire credit of duty paid on capital goods through TRAN-1 where no CENVAT credit was taken under the existing law - Section 140(2) of the CGST Act, 2017 - Appellant received capital goods before the appointed day, but CENVAT credit was not availed due to pending inspection of the goods, and the Appellant availed the entire credit through TRAN-1 - SCN proposed disallowance of the credit with interest and penalty - Appellant contended that the section allows credit of unavailed CENVAT credit not carried forward in a return, does not restrict the quantum to a part of the credit, and that the Board Circular cannot override the statute - Whether the entire credit of duty paid on capital goods can be availed through TRAN-1 under Section 140(2) where no credit was taken under the existing law - HELD - Section 140(2) allows credit of unavailed CENVAT credit on capital goods not carried forward in a return under the existing law, subject to the conditions that the person is not opting for composition levy, that the credit was not carried forward and that it is admissible under both the existing law and the GST law - The Explanation defines unavailed CENVAT credit as the amount remaining after subtracting the credit already availed from the aggregate credit to which the person was entitled, and Rule 117(2)(a) of the CGST Rules does not provide that the credit availed or utilised cannot be nil. The section does not specify that only a part of the credit can be transitioned, so that credit not carried forward in a return can be transitioned through TRAN-1 whether it is a part or the whole. The Guidance Note in the Circular, which itself advises reference to the full text of law, cannot restrict the statutory entitlement - The Appellant has fulfilled the conditions for transitional credit. The impugned order is set aside to that extent and the Appellant is entitled to avail the entire credit of duty paid on capital goods - GST - Transitional credit claimed against a single invoice containing an annexure of multiple invoices - Section 140(2) of the CGST Act, 2017 - Part of the credit was denied on the ground that credit relating to multiple invoices detailed in an annexure was claimed against a single invoice - Appellant contended that only the first invoice number was entered in TRAN-1 due to clerical oversight leaving out details of the remaining invoices, that all the invoices were available and were produced with the appeal - Whether the credit can be denied on the ground that it was claimed against a single invoice - HELD - The authorities below themselves observed that the single invoice contained an annexure detailing the multiple invoices, and the Appellant admitted that the details of the remaining invoices were not apparent in TRAN-1 due to oversight. Since the Appellant submitted that all the invoices were available, it must be given an opportunity to produce them before the original authority, which shall verify them and allow the credit if otherwise in order - The matter is remitted to the original authority to this extent.
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