SC Dismisses SLP of Department for TRAN-1 Credit

SC dismissed SLP filed by department against HC order which allowed assessee to file Tran-1

The Special Leave Petition (SLP) was filed by the Union of India against the order of Punjab & Haryana High Court in the case of Advert Technologies (P.) Ltd v. Union of India [2019] 111 taxmann.com 27 (Punjab & Haryana).

In the said case, the assessee could not carry forward unutilized CENVAT credit of Central Excise and Input Tax Credit (ITC) of VAT on account of non-filing or incorrect filing of Tran-1 by the prescribed last date, i.e., 27.12.2017. The Honorable Court directed revenue authorities to permit the assessee to file or revise already filed incorrect Tran-1 on or before November 30, 2019. It also directed revenue authorities to verify genuineness of claim of assessee but carry forward of legitimate claim of CENVAT/ITC shall not be denied on the ground of non-filing of TRAN-I by 27.12.2017.

The Apex Court had dismissed SLP filed by the Union of India, thereby, upheld the order passed by the Punjab & Haryana High Court which allowed assessee to file Tran-1 after the prescribed due date.

It is pertinent to note that it is settled law of teh land that the  accrued and vested right of CENVAT credit is indefeasible and there is no lapsing provision eitehr when there was change from pre-GST era to post GST era as well.