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The respondents are directed to verify the claim made by the petitioners for transitional credit, If the respondent-authority is satisfied with the claim then the transitional credit claimed by the petitioners under Section 140(3) of the CGST Act is to be allowed, otherwise claim of the petitioners would fail.

Transitional credit— In the instant case, the petitioner claimed the credit of transitional credit by filing prescribed Form-GST-TRAN-1 with regard to the Excise Duty paid by the manufacturers on the vehicles and spare parts held in stock by the petitioners as on 30th June 2017. the petitioners submitted that as per provisions of Section 140(3) of the CGST Act, 2017, petitioners are entitled to get the credit of the excise duty paid on the vehicles stock of the petitioners. respondent submitted that the petitioners are required to follow the prescribed procedure of getting CTD in his name from the manufacturer so as to avail transitional credit, failing which, the petitioners are not entitled to transitional credit. It was therefore submitted that the respondent authorities have rightly initiated the inquiry against the petitioners as per Rule 121 of the CGST Rules, 2017. The petitioners are not having CTD, but have produced on record the copies of the invoice received from the dealers along with copies of invoice issued by the manufacturer of the cars or spare parts (as applicable) in name of the dealers showing the payment of excise duty along with the Chassis Number of cars (in case of cars). Held that— the respondents are required to consider the documents furnished by the petitioners in support of the claim of transitional credit with regard to cars and spare parts lying in the stock of the petitioners as on 30th June 2017