The grievance of the petitioner is that the notice had been issued only for the assessment under the VAT Act and where the authority examined and disallowed the transitional tax credit claimed under the GST Act. The impugned order is quashed and set aside without entering into the merits of the case and only on the non availment of an opportunity of hearing on the aspect of disallowance of the transitional tax credit.
Section 140 of the CGST Act, 2017 — Transitional Credit – The petitioner challenged the assessment undertaken under the VAT Act for the period 01.04.2017 to 30.06.2017. The grievance of the petitioner is that the notice had been issued only for the assessment under the VAT Act and the order came to be passed on 12.01.2021 under the VAT Act where the authority examined and disallowed the transitional tax credit claimed under the GST Act. The transitional tax credit, had not been utilized and it is lying in the Electronic Credit Ledger, such disallowance is without issuance of the SCN and opportunity of hearing. The respondent submitted that the matter can go back to the very officer or to the higher official, who after hearing the parties will decide in accordance with law. The court observed that let the opportunity of hearing be made available to the petitioner.
Held that:- The Hon’ble High Court set aside the impugned order dated 12.01.2021. Further, directed the respondent to decide the matter afresh in accordance with law.
The grievance of the petitioner is that the notice had been issued only for the assessment under the VAT Act and where the authority examined and disallowed the transitional tax credit claimed under the GST Act. The impugned order is quashed and set aside without entering into the merits of the case and only on the non availment of an opportunity of hearing on the aspect of disallowance of the transitional tax credit.
Section 140 of the CGST Act, 2017 — Transitional Credit – The petitioner challenged the assessment undertaken under the VAT Act for the period 01.04.2017 to 30.06.2017. The grievance of the petitioner is that the notice had been issued only for the assessment under the VAT Act and the order came to be passed on 12.01.2021 under the VAT Act where the authority examined and disallowed the transitional tax credit claimed under the GST Act. The transitional tax credit, had not been utilized and it is lying in the Electronic Credit Ledger, such disallowance is without issuance of the SCN and opportunity of hearing. The respondent submitted that the matter can go back to the very officer or to the higher official, who after hearing the parties will decide in accordance with law. The court observed that let the opportunity of hearing be made available to the petitioner.
Held that:- The Hon’ble High Court set aside the impugned order dated 12.01.2021. Further, directed the respondent to decide the matter afresh in accordance with law.