Madras HC Directs GST Principal Commissioner to Verify Un-utilized Accumulated Central Excise Credits and Customs Duty Credits of 33.28 lakh Credits in Tran-1 Form

· Petitioner may be allowed to transition credit after verification

The Madras High Court directed the GST Principal Commissioner to verify un-utilized accumulated credits.

The petitioner, Vikas Elastochem Agencies Private Limited had sent a representation to the Principal Chief Commissioner, GST and Central Excise, the second respondent herein to permit the petitioner to make an appropriate corrections in Tran-1 Form filed electronically by the petitioner.

The application was made by the petitioner long after the time had expired for filing Tran-1 for making an amendment in Tran-1. Since the petitioner was unable to elicit any favourable response from the second respondent herein, the petitioner had filed petition to direct the respondent to dispose of the representation of the petitioner submitted by the petitioner’s Chartered Accountant to process the GST Tran Credit amounting to Rs.33,28,709/-.

The single bench of Justice C. Saravanan directed the respondent to take an independent decision by deputing a suitable officer from the Department to verify the petitioner indeed had un-utitlized accumulated credit for a sum of Rs.33,28,709.60 (Central Excise Credits Rs.24,81,347.10 and Customs Duty credits Rs.8,47,362.50). The respondent or any other Nodal officer may examine the issue and call upon the petitioner to produce their records and thereafter come to a proper conclusion as to whether the petitioner was indeed unable to transition the credit in time.

“If the aforesaid amount of credit was available on 01.07.2017, the technical problem in the GST Portal may be internally resolved by the respondents by issuance of suitable directions in terms of decision of the Hon’ble Madurai Bench of this Court rendered in M/s. Ram Auto Vs. The Commissioner of Central Taxes and Central Excise and ors reported in 2021-VIL-192-Mad. This exercise shall be carried out by the second respondent within a period of six weeks from the date of receipt of a copy of this order.