Section 54 and 140 of the CGST Act, 2017 — Refund –Transitional Credit – The petitioner filed writ against the impugned order dated 24.01.2020. The respondent passed another order dated 24.06.2020 and recognized that petitioner is entitled for a refund of excess amount of Rs. 13,38,958/-, which was sought to be denied vide the impugned order as transitional credit. The petitioner submitted that the transitional credit was adjusted against the tax liability under the Act. The petitioner submitted that since the transitional credit, which has been now allowed by way of refund has already been adjusted by the petitioner, the respondent may be directed to give credit and adjust the same as otherwise they may take steps to demand interest under Section 50 of the said Act.
Held that:- The Hon’ble High Court closed the writ and held that since the respondent vide order dated 24.06.2020 has categorically accepted that there was excess amount, which is liable to be refunded and the petitioner had adjusted the same from transitional credit towards its tax liability, therefore, question of payment of interest under Section 50 of the said Act, does not arise.—K.M. Tiles Vs The State Tax Officer  25 TAXLOK.COM 073 (Madras)