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The challenge in this writ petition is premature, insofar as what is challenged is only a show cause notice. This writ petition is dismissed.

Section 140 of the CGST Act, 2017- Transitional Credit – The petitioner challenged show cause notice dated 26.11.2019 issued in terms of Section 73 (1) of the Act, for recovery of ITC. The petitioner counsel submitted that the respondent wants to recover input tax when such ITC has not even been set off by the petitioner and still continues to be reflected in the credit ledger. The respondent counsel submitted that the challenge is premature, as what is challenged is only a show cause notice calling upon the petitioner to file a reply, which could well have been done by it. The court observed that in the SCN it is stated that the taxable person is not eligible to carry forward the credit to their electronic credit ledger even though it may be lying in balance in their return. Further, SCN refers to recovery of the Cenvat credit that has been wrongly transitioned. Held that:- The Hon’ble High Court dismissed the petition and directed the petitioner to put forth its objections within a period of four weeks. Such objections will be considered, the petitioner heard and orders passed within a period of four weeks from date of receipt of the petitioner's objection.
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