Section 140 of the CGST Act, 2017 — Transitional Credit –TDS Credit -- The only issue involved is whether the respondent was right in rejecting the petitioner's request under Section 140(1) for carrying forward the accumulated credit in respect of TDS. The respondent has rejected the petitioner's request for carrying forward of unutilized VAT TDS to the new GST regime without giving any reason. The petitioner relied upon decision in respect of M/s DMR Constructions Vs. Assistant Commissioner, Commercial Tax Department, Rasipuram, Namakkal District. The Court observed that being a non-speaking order as no reasons have been given for rejecting the petitioner's request for carrying forward of the unadjusted VAT TDS to the GST regime that too when the law has been well settled by the decision of the learned Single Judge, which has attained finality as no Appeal has been filed against the said order.

Held that:- The Hon’ble High Court quashed the impugned order and directed that the petitioner is entitled to transition TDS under the TNVAT Act in terms of Section 140 of the Act.