Section 140 of the CGST Act, 2017 – Transitional Credit –- The petitioner challenged order in Form GST DRC-07  dated 07.12.2021, as the same is illegal and arbitrary. It is alleged that, there was no balance of input tax credit on VAT as on 30.06.2017 and the unutilised ITC on capital goods as on 30.06.2017 is Rs. 11,05,519/- whereas the petitioner claimed under TRAN-1 return, a sum of Rs. 33,25,767/-. In order to reverse the excess credit, a notice was issued on 16.10.2019. But the same was not replied. Therefore, the impugned order has been passed on 07.12.2021. The counsel for the petitioner submitted though notice had been given as against which documents and the returns have been submitted to the assessing officer, since no opportunity of personal hearing was given, the petitioner could not appear in person. The Court observed that whenever there is an appeal remedy under the tax statute, that appeal remedy shall be first exhausted.

Held that:- The Hon’ble High Court dismissed the petition.