Section 140 of the CGST Act, 2017— Transitional Credit – The petitioner challenged the order dated 12.12.2019 partly rejecting transitional ITC and the order dated 04.03.2021 passed in appeal, on the ground that proper opportunity of hearing was not afforded, without there being any reply to show cause notice, the order was passed by the Adjudicating Authority. The counsel for the petitioner relied the decision of the Hon’ble Supreme Court in the case of Union of India & Another Versus Filco Trade Centre Pvt. Ltd. & Another. The court observed that the order against the petitioner has been passed without submission of reply to show cause notice. There is dispute with regard to the service of notice through mail. Further, substantial grounds have been raised in the Appeal. Those grounds ought to be considered in its proper perspective.

Held that:- The Hon’ble High Court set aside the orders dated 12.12.2019 and 04.03.2021 with the direction that respondents shall provide facility to the petitioner for filing form TRAN-1 within the extended period and shall not refuse to accept the same if so filed. Upon submission of TRAN-1 application by the petitioner, the department shall duly apply its mind, examine all the aspects after affording opportunity of hearing and pass fresh order in accordance with law.