Section 140 of the CGST Act, 2017 –— Transitional Credit -- The petitioner initially challenged non-grant of transitional credit under Section 140 of the Act. The court earlier directed the petitioner to take the benefit of the order dated 22.07.2022 passed by the Apex Court and the Circular No. 180/12/2022-GST dated 09.09.2022.  But in the meantime, the registration of the petitioner was cancelled on non filing of GST returns. The petitioner has made a statement that they are willing to file all the required returns as well as pay all the dues as may be assessed. The court observed that the petitioner is willing to do all the needful but the difficult situation is that for doing so, the petitioner is also required to operate the portal and further the TRAN-1 and TRAN-2 transactions.

Held that:- The Hon’ble High Court directed that respondent will inform the total amount of taxes they are required to be paid including the interest and penalty and after payment of dues, the petitioner be allowed to operate the portal for the purpose of furthering the TRAN-1 and TRAN-2 transactions. In doing so, if any Cenvat Credit is due to the petitioner, he will be allowed to use the same for payment of actual tax.