Section 140 of the CGST Act, 2017 – Transitional Credit –-–-The petitioners challenged the communication of the respondents dated 18.12.2017 and 20.12.2017. The petitioners submitted that after the aforesaid notice, the respondents did not respond as a result of which, the petitioners were unable to transition the credit. The counsel for the respondents submitted that the petitioners were asked to furnish documents and advised to not to file TRAN – I without getting approval from the respondent and since that the petitioners did not give the documents in time, no order was passed. The court observed that ends of justice will be made if the respondents decides the issue as to whether the petitioners were indeed entitled to the input tax credit during which could not be transitioned under the provisions of the respective GST enactments.

Held that:- The Hon’ble High Court directed the respondent to issue appropriate notice to the respective petitioners within a period of forty five days and if it is concluded that the petitioners were indeed entitled to transition the credit which could not be transitioned in TRAN-1 , the respondent shall release the amount in cash or by allowing the petitioner to take suitable entry in the electronic ledger.