Section 140 of the CGST Act, 2017  — Transitional Credit –-- The petitioner challenged the order dated 07.08.2021 which have been passed without providing any reasons. The Petitioner on 29.04.2021 was issued a SCN alleging that the petitioner availed excess ITC in Tran-1 for the Financial year 2017-2018. The said show cause notice however did not contain any reasons for disallowance of the said Trans-I credit and simply Section 73 was quoted in the notice. The Respondent No.3 however without addressing the same passed the impugned non-speaking order dated 07.06.2021. The court observed that the petitioner has every right to know the reasons for passing an order against him.

Held that:- The Hon’ble High Court set aside the order and remanded the matter back to the respondent authorities to issue a fresh proceeding in accordance with law. This exercise shall be completed within a period of two months.