The petitioners held to be entitled to transition TDS under the TNVAT Act in terms of Section 140 of the GST Act
Section 140 of the CGST Act, 2027- TRAN-1 – The petitioner prayed to quash the impugned order. The petitioner claimed the unavailed credit through TRAN-1 but the respondent issued a notice dated 07.01.2020, alleging that the petitioner has no excess carry forward ITC as on 30.06.2017 and proposed to disallow and reverse the entire transitional credit claimed by him. The petitioner replied that the ITC claimed through TRAN-1 is relating to the tax paid under TDS and the same is eligible to be carry forwarded to the new regime. Thereafter, the respondent passed the order, even without granting any opportunity of personal hearing, which is violation of principles of natural justice. The respondent counsel submitted that the petitioner is having an appeal remedy before the concerned Appellate Authority. The petitioner’s counsel submitted that the issue involved in the present petition is squarely covered by the order of this Court in batch of Writ Petitions in W.P.Nos.9991 of 2019 etc., dated 26.02.2021, wherein, the learned single judge has held that the petitioners are entitled to transition TDS in terms of Section 140 of the 2017. The court observed that the respondent’s stand that the petioner is having an appeal remedy before the concerned Appellate Authority, cannot be accepted.
Held that:- The Hon’ble High Court set aside the impugned order dated 07.06.2020.
The petitioners held to be entitled to transition TDS under the TNVAT Act in terms of Section 140 of the GST Act
Section 140 of the CGST Act, 2027- TRAN-1 – The petitioner prayed to quash the impugned order. The petitioner claimed the unavailed credit through TRAN-1 but the respondent issued a notice dated 07.01.2020, alleging that the petitioner has no excess carry forward ITC as on 30.06.2017 and proposed to disallow and reverse the entire transitional credit claimed by him. The petitioner replied that the ITC claimed through TRAN-1 is relating to the tax paid under TDS and the same is eligible to be carry forwarded to the new regime. Thereafter, the respondent passed the order, even without granting any opportunity of personal hearing, which is violation of principles of natural justice. The respondent counsel submitted that the petitioner is having an appeal remedy before the concerned Appellate Authority. The petitioner’s counsel submitted that the issue involved in the present petition is squarely covered by the order of this Court in batch of Writ Petitions in W.P.Nos.9991 of 2019 etc., dated 26.02.2021, wherein, the learned single judge has held that the petitioners are entitled to transition TDS in terms of Section 140 of the 2017. The court observed that the respondent’s stand that the petioner is having an appeal remedy before the concerned Appellate Authority, cannot be accepted.
Held that:- The Hon’ble High Court set aside the impugned order dated 07.06.2020.