Section 140 of the CGST Act, 2017 —– Transitional Credit —- The applicant challenged the constitutionality of the amended Section 140 of the Act. The main matter is to come up for hearing some time in the last week of April but despite requesting the adjudicating authority to wait for some time, the adjudicating authority wants to proceed with the adjudication proceedings. The Standing Counsel appearing for the respondents pointed out that the Madras High Court in the case of Assistant Commissioner of CGST and Central Excise and Ors. vs. Sutherland Global Services Private Limited and Ors., had the occasion to consider the same issue wherein the main issue of transfer of cess came to be decided in favour of the Revenue.

Held that:- The Hon’ble High Court clarified that the further proceedings, if any at the instance of the adjudicating authority shall be subject to the final outcome of the main matter.