Section 140 of the CGST Act, 2017 — Transitional Credit —- The petitioner prayed for directions to the respondents to consider the petitioner's rectified manual TRAN-1  for crediting the ITC. The petitioner by mistake filled up the details in part 7(d) of TRAN-1 under Section 140. The court observed that in many cases, the benefit has been extended to the assessee to utilize the credit. The court relied on the decision of the Hon'ble Supreme Court in the case of Collector of Central Excise, Pune and others V Dai Ichi Karkaria Limited and others, wherein it was held that the credit availed under the provisions of the erstwhile Central Excise Act and Central Excise Rules, 1944 are indefeasible and are intended to reduce the cascading effect of the tax to benefit the consumers.

Held that:- The Hon’ble High Court directed the respondents to allow the input tax credit, after a scrutiny and verification by a competent officer that such credit could be transitioned but for wrong declaration in Form TRAN-1. If the credit was available to be transitioned, it cannot be denied. The respondents shall thereafter either allow the petitioner to file either a revised TRAN-1 or directly make a credit entry in the electronic cash register of the petitioner. The entire exercise shall be completed within a period of 3 months.