The Bombay High Court allowed the writ petition and directed the respondents to take such action as may be necessary for transitioning the credit of such amount into petitioner’s credit ledger/electronic credit ledger. There is no reason to take a different view from the one as expressed by the Bombay High Court, merely because the respondents chose to file a counter in the present writ petition alleging negligence on the part of the petitioner.
Section 142 of the CGST Act, 2017—Transitional Credit -- The petitioner challenged the action of the respondents, in non-transitioning the credit of VAT paid into petitioner’s electronic credit ledger in Form GST PMT-2, on the basis of declaration in Form GST TRAN-1 filed on 27.12.2017; not allowing the petitioner to avail the credit of the amount in Form GSTR-3B; and utilize the same in discharge of its tax liability. The petitioner submitted that in terms of provisions of Section 142(11)(c) of the Act, the petitioner became entitled to take credit of VAT or Service Tax paid under the existing laws proportionate to the extent of supplies made after the appointed day and such credit is to be calculated in the manner to be prescribed. The Petitioner submitted that it had paid the service tax on 10% interest portion of leasing contracts under the provisions of Finance Act, 1994, and paid 100% of VAT on the entire value of lease rentals receivable. The Petitioner contended that despite successfully uploading Form GST TRAN-1 for transition of credit of Rs. 21,07,574/-, the same was not reflected in the online electronic credit ledger of the petitioner. The petitioner also addressed letters to all the concerned, but his grievance was not resolved. The court observed that various activities under GST are technology driven, and there exists no seamless connectivity between a tax payer and the respondent network, and a tax payer is required to go through various intermediate service provides, it would be highly improbable to expect the transition to be smooth and without glitches as being claimed by the respondents. The court relied upon the judgment dated 29.10.2020 of the Bombay High Court in the case of M/s BMW India Financial Services Pvt. Ltd.
Held that:- The Hon’ble High Court allowed the writ Petition and directed the respondents to transition the credit of amount of Rs. 21,07,574/- into petitioner’s electronic credit ledger in Form GST PMT-2, within a period of four weeks.
The Bombay High Court allowed the writ petition and directed the respondents to take such action as may be necessary for transitioning the credit of such amount into petitioner’s credit ledger/electronic credit ledger. There is no reason to take a different view from the one as expressed by the Bombay High Court, merely because the respondents chose to file a counter in the present writ petition alleging negligence on the part of the petitioner.
Section 142 of the CGST Act, 2017—Transitional Credit -- The petitioner challenged the action of the respondents, in non-transitioning the credit of VAT paid into petitioner’s electronic credit ledger in Form GST PMT-2, on the basis of declaration in Form GST TRAN-1 filed on 27.12.2017; not allowing the petitioner to avail the credit of the amount in Form GSTR-3B; and utilize the same in discharge of its tax liability. The petitioner submitted that in terms of provisions of Section 142(11)(c) of the Act, the petitioner became entitled to take credit of VAT or Service Tax paid under the existing laws proportionate to the extent of supplies made after the appointed day and such credit is to be calculated in the manner to be prescribed. The Petitioner submitted that it had paid the service tax on 10% interest portion of leasing contracts under the provisions of Finance Act, 1994, and paid 100% of VAT on the entire value of lease rentals receivable. The Petitioner contended that despite successfully uploading Form GST TRAN-1 for transition of credit of Rs. 21,07,574/-, the same was not reflected in the online electronic credit ledger of the petitioner. The petitioner also addressed letters to all the concerned, but his grievance was not resolved. The court observed that various activities under GST are technology driven, and there exists no seamless connectivity between a tax payer and the respondent network, and a tax payer is required to go through various intermediate service provides, it would be highly improbable to expect the transition to be smooth and without glitches as being claimed by the respondents. The court relied upon the judgment dated 29.10.2020 of the Bombay High Court in the case of M/s BMW India Financial Services Pvt. Ltd.
Held that:- The Hon’ble High Court allowed the writ Petition and directed the respondents to transition the credit of amount of Rs. 21,07,574/- into petitioner’s electronic credit ledger in Form GST PMT-2, within a period of four weeks.