Wrongly/Irregular taken ITC through TRAN-1 is recoverable from the appellant.
Section 140 of the CGST Act, 2017 — Transitional Credit — The appellant is engaged in Construction services. During the course of audit of the records till 30.06.2017 and TRAN-1, conducted by the department, it was alleged that the appellant has wrongly/irregularly transferred/taken and utilized inadmissible ITC amounting to Rs. 14,73,718/- through TRAN-1. i.e claimed against Inputs and Inputs contained in Semi Finished Goods and Inputs contained in Finished Goods. Accordingly, a SCN was issued to the appellant for recovery of ITC of Rs. 14,73,718/- under the provisions of Section 73(1). The adjudicating authority has confirmed the demand alongwith interest and penalty, as proposed in show cause notice. Being aggrieved the impugned order, the appellant has filed appeal. The authority observed that the ITC claimed Rs. 7,53,571/- on inputs held in stock as on 30.06.2017 is not found to be admissible as per condition mentioned in condition (v) of Section 140(3) of the Act,2017. Further, the appellant’s claim for ITC of Rs. 7,20,147/- on inputs contained in semi finished work is not correct, because as a building under construction being attached to the earth can- not be called goods in terms of definition as per Section 2(52). Thus, the appellant is not entitled to take ITC of Rs. 14,73,718/- in TRAN-1.
Held that:- The Hon’ble authority reject the appeal filed.
Wrongly/Irregular taken ITC through TRAN-1 is recoverable from the appellant.
Section 140 of the CGST Act, 2017 — Transitional Credit — The appellant is engaged in Construction services. During the course of audit of the records till 30.06.2017 and TRAN-1, conducted by the department, it was alleged that the appellant has wrongly/irregularly transferred/taken and utilized inadmissible ITC amounting to Rs. 14,73,718/- through TRAN-1. i.e claimed against Inputs and Inputs contained in Semi Finished Goods and Inputs contained in Finished Goods. Accordingly, a SCN was issued to the appellant for recovery of ITC of Rs. 14,73,718/- under the provisions of Section 73(1). The adjudicating authority has confirmed the demand alongwith interest and penalty, as proposed in show cause notice. Being aggrieved the impugned order, the appellant has filed appeal. The authority observed that the ITC claimed Rs. 7,53,571/- on inputs held in stock as on 30.06.2017 is not found to be admissible as per condition mentioned in condition (v) of Section 140(3) of the Act,2017. Further, the appellant’s claim for ITC of Rs. 7,20,147/- on inputs contained in semi finished work is not correct, because as a building under construction being attached to the earth can- not be called goods in terms of definition as per Section 2(52). Thus, the appellant is not entitled to take ITC of Rs. 14,73,718/- in TRAN-1.
Held that:- The Hon’ble authority reject the appeal filed.