Section 140 of the CGST Act, 2017 – Transitional Credit – Recovery of wrongly availed CENVAT credit under erstwhile Act -- The petitioner challenged the adjudication proceedings initiated under Section 73 of the Act vide which the respondent has disallowed the CENVAT credit carried forward by the petitioner by filing TRAN-1, in terms of Section 140. The counsel for the petitioner submitted that Section 73 deals with cases where tax has been short paid or not paid or erroneously refunded or where ITC has been wrongly availed or utilized. The present dispute relates to alleged wrongful availment of CENVAT credit. The court observed that the initiation of proceedings by respondent no. 1 under Section 73 (1) for alleged contravention of the C.E.A. and Finance Act, read with C.C.R. against the petitioner by filing TRAN 1 in terms of Section 140 for transition of CENVAT Credit as being inadmissible under the existing law was beyond his jurisdiction. Consequently the Order in Original dated 30th March, 2022 passed by the respondent being without jurisdiction cannot be sustained in the eye of law.

Held that:- The Hon’ble Court set aside the impugned adjudication proceedings and the order in original dated 30th March, 2022. However granted liberty to the respondent authorities to initiate proceedings under the provisions of the existing law, i.e. C.E.A, 1944, Finance Act, 1994 read with C.C.R, 2004 against the petitioner for the relevant tax period in accordance with law.