Section 140 of the CGST Act, 2017 —– Transitional Credit — Credit of Ed Cess and H Ed Cess - The applicant challenged the constitutionality, vires and legality of Section 28 of the Act and Circular No.87/06/2019–GST dated 02.01.2019, since, it sought to retrospectively disallow the transaction and carry forward of credit of Education Cess and Secondary and Higher Education Cess into the GST regime. A SCN was issued on 01.12.2021, which was adjudicated. The applicant placed reliance upon the decision of the Bombay High Court in the case of Godrej & Boyce Mfg. Co. Ltd. Vs. Union of India. The court observed that the subject matter of challenge in the main petition is to the constitutional validity of the amended Section 140 of the Act. The main matter is coming up for hearing on 30.11.2022.

Held that:- The Hon’ble High Court directed that the applicant shall be at liberty to file an appeal and can make a request for stay of appeal. Any further proceedings, at the instance of the appellate authority shall be subject to the final outcome of the main matter. If the issue of limitation is the reason for hampering the chance of the applicant in preferring the appeal, let that not be raised against him.