Section 140 of the CGST Act, 2017 — Transitional Credit – The Petitioner challenged SCN dated 09.11.2020 which proposes levy of interest and penalty on the ITC that was stated to be erroneously availed without filing form TRAN-1 on the basis of the GSTR 3B. The counsel for the Petitioner placed reliance upon the decision of the Hon'ble Supreme Court of India in the case of Union of India and another vs. FILCO Trade Centre Private Limited and another. He further submitted that form TRAN-1 was filed by the Petitioner on 11.10.2022 and the same is pending consideration. The court observed that SCN was issued on the premise that the transition of credit being invalid inasmuch as it was not made through form TRAN-1. However, form TRAN-1 has now been filed

Held that:- The Hon’ble High Court directed that impugned SCN be kept in abeyance until orders are passed on the claim of transition credit under form TRAN-1 that is now filed.