The application filed by the applicants is hereby rejected.
Transitional credit— The applicant has sought Advance Ruling on following two questions :
(i) Whether the applicant is entitled to carry forward the accumulated cenvat credit as reflected in its Excise returns for the month of June- 2017 to GST regime in terms of provisions under the CGST Act, 2017, more particularly Section 140 of the CGST Act ?
(ii) If the answer to the above is in affirmative, whether the accumulated Cenvat Credit so carried forward, not being the credit availed under the GST regime, is required to be adjusted/restricted in the manner prescribed under Rules 42 and 43 of the CGST Rules, 2017 ?
We find that the short point involved in the matter before us is regarding admissibility of Cenvat credit lying unutilized as balance as per the last ER-1 filed by the applicant for the month of June, 2017, in light of the provisions of Section 140 of the CGST Act, 2017 which specifically deals with the subject of Transitional Credit.
the question raised by the applicant before the AAR had already been examined by the department as the applicant had claimed such disputed credit in their TRAN-1.
when the question raised does not fall within the ambit of Section 97(2) and be that as it may, the issue has already been pending before the departmental authorities we do not find any reason to take up the matter on merits. In view of the clear provisions given under Section 97 and Section 98(2), the application deserves to be rejected at the stage of admission only.