Section 140 of the CGST Act, 2017— Transitional Credit -- The petitioner sought a writ of mandamus directing the Respondents to allow it to avail the short transitioning of Input Tax Credit amounting to Rs. 5,51,33,699/- by either updating the electronic credit ledger at their back end, in accord with the details of credit submitted by the Petitioner or allowing them to revise the Form GST TRAN-1, in conformity with the returns filed under the existing laws that stand repealed by the Act, 2017. The Petitioner submitted that the Respondents denied the Petitioner benefit of transitional provision without any cogent reason and they are seeking transition of ITC that had accrued and vested in its favour under the erstwhile regime. They have filed the statutory GST TRAN-1 form within the specified time. However, since there was a bona fide error in filling the same, the Petitioner filed a revised return correcting the same and yet, the entire credit is still not exhibited in the electronic credit ledger.
Held that:-The Hon’ble High Court allowed the petition and permitted the petitioner to revise TRAN-1 Form on or before 30.06.2020 and transition the entire ITC, subject to verification by the Respondents. The Court issued a writ mandamus to the Respondents to either open the online portal so as to enable the Petitioner to file revised declaration TRAN-1 electronically, or to accept the same manually. Respondents shall thereafter process the claims in accordance with law.—SKH Sheet Metals Components Vs Union of India & Ors.  25 TAXLOK.COM 022 (Delhi)