Section 140 of the CGST Act, 2017--- Transitional Credit —ISD Credit - The Petitions have been filed in relation to the procedural difficulties / objections raised with regard to distribution and/or utilization and/or eligibility of ISD credit of Service Tax/excise duty under Section 140 of the Act. It is submitted that ISD credit ought to have been distributed by the ISD to its different units/offices before 1.07.2017 and thereafter the transferee unit/offices ought to have filed TRAN-1 to transition the said credit distributed to it by ISD, into their respective ECL. The Petitioners attempted distribution of credit transitioned to their units/offices. However, they were not able to distribute/recognise and report the distribution, as there were procedural and functional difficulties in relation to the GST forms and portal. The court relied upon the judgment of the Hon’ble Apex Court in the matter of Union of India & Another Vs Filco Trade Centre Pvt. Ltd.

Held that:- The Hon’ble Court directed all Petitioners, through their respective units/offices registered under the Act can avail this window ad file GST TRAN-1/revised GST TRAN-1 at the units/offices in terms of the Hon’ble Supreme Court’s order. The GST TRAN-1/ revised GST TRAN-1 filed by the units/offices will be basis the manual ISD invoices issued / to be issued by ISD of Petitioner subject to aggregate credit not exceeding the ISD credit available with the ISD Petitioner. The concerned officers are given 90 days thereafter to verify the veracity of the claim/ Transitional Credit and pass appropriate orders thereon on merits after granting appropriate reasonable opportunity to the parties concerned.