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2020 (2) TMI 1454 - HC - GSTSeeking declaration that transitional Input Tax Credit is admissible to the petitioners - Section 140(3) of the GST Act - HELD THAT:- On perusal of Section 140(3) , it is clear that they nowhere provide for the petitioners to submit any CTD to claim the transitional credit. As far as the reliance placed on behalf of the respondents on the Cenvat Credit Rules, 2017 and the Notification No. 21/2017 is concerned, it is true that the Notification No. 21/2017 issued under sub-rule (2) of Rule 15 of Cenvat Credit Rules, 2017 prescribes procedure to avail the transitional credit of Cenvat by a dealer or a trader, who was not registered under the Central Excise Law - On perusal of the Rule 15 and more particularly explanation thereto, it appears that “Specified goods” for the sub-rule (2) would mean such goods which have a value more than rupees twenty five thousand per piece and bear the brand name of the manufacturer or the principal manufacturer and are identifiable by a distinct number such as chassis or engine number of a car. Sub-rule (2) provides that a person registered under the Central Goods and Services Tax Act, 2017, who was not required to register under the Excise Act shall be deemed to be in possession of a document evidencing payment of duty, if the manufacturer of the specified goods on which duty of Central Excise was leviable has issued a credit transfer document (CTD) to him, in relation to such specified goods held in stock by him on 1st of July, 2017 - In the facts of the case, the petitioners are not having CTD, but have produced on record the copies of the invoice received from the dealers along with copies of invoice issued by the manufacturer of the cars or spare parts (as applicable) in name of the dealers showing the payment of Excise Duty along with the Chassis Number of cars (in case of cars). The respondents are required to consider the documents furnished by the petitioners in support of the claim of transitional credit with regard to cars and spare parts lying in the stock of the petitioners as on 30th June, 2017 like invoices bearing the name of petitioners issued by the dealer and the invoices issued by the manufacturers in name of the dealer with details such as Chassis Number of the car in case of cars. If the respondents are satisfied on basis of such documents that the Excise Duty has been paid by the manufacturer, the Excise Duty paid should be allowed as transitional credit in the hands of the petitioners - Petition disposed off.
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