Section 140 of the CGST Act, 2017 –– Transitional Credit ––—- The petitioner challenged the impugned communication dated 19.11.2020, whereby, TRAN-1 Credit, was not considered. There was a huge fire accident on 01.12.2016, which resulted in few fatal deaths. Under these circumstances, the factory was closed for a period about two years and after several round of litigations, the petitioner was able to re-open the factory. The petitioner was required to file TRAN-1 Application. The last date for filing return was 27.12.2017. However, the petitioner was unable to file Form GST TRAN-1 in time as the factory had been closed and was under lock and seal. The respondents have rejected the request of the petitioner stating that the petitioner is not entitled to avail the facility under sub-rule (1A) to Rule 117.  The court observed that transition of the input tax credit cannot be restricted or denied merely because there were technical difficulties. In case, the respondents are unable to permit the petitioner to file TRAN-1 belatedly, they have to credit the corresponding amount in the electronic cash register of the petitioner, provided such credit remained unutilized on the cut-off date.

Held that:- The Hon’ble High Court directed the respondents to verify whether indeed the petitioner had any ITC on the date of the accident i.e. 01.12.2016. Further, directed the respondents to verify the same and allow such credit which remained unutilized on the date of accident in the regular returns filed by the petitioner.