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2023 (11) TMI 709 - HC - GSTValidity of Show Cause Notice (SCN) - Payment of tax under the compounding scheme under Section 8(f)(i) of the KVAT Act - Wrongful availment of TRAN Credit - HELD THAT:- TRAN credit is transitional input tax credit made use of by a dealer under the KVAT Act regime under Section 140(6) of the KGST Act 2017, it is specified that the dealer who was either paying tax at a fixed rate or paying a fixed amount in lieu of the tax payable under the existing law shall be entitled to take, in his electronic credit ledger, credit of eligible duties in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the appointed day. The petitioner has claimed credit of this TRAN credit in its returns for the period from 01.07.2016 to 30.06.2017. The Judgment in the case of M/S. USHA MARTIN LIMITED, VERSUS ADDITIONAL COMMISSIONER, CENTRAL GST AND EXCISE, EXCISE, JAMSHEDPUR, JOINT COMMISSIONER, CENTRAL GST AND EXCISE, JAMSHEDPUR, COMMISSIONER OF CGST & CX, JAMSHEDPUR, UNION OF INDIA [2022 (11) TMI 1266 - JHARKHAND HIGH COURT] wherein it has been held that initiation of proceedings under Section 73 (1) of the CGST Act, 2017 for contravention of Central Excise Act and Finance Act, read with Central Credit Rules by filing TRAN 1 in terms of Section 140 of the CGST Act for transition of CENVET Credit is without jurisdiction has no application to the facts of the present case. In the present case the petitioner has claimed the TRAN in respect of the purchases made by him during 01.07.2016 to 30.06.2017 for which he has claimed credit in GST TRAN. On examination, the authority has found that the claim of the petitioner is not borne out from the records. Challenge to the show cause notice in writ Court is maintainable only in certain situations that is where the notice is wholly without jurisdiction or there is violation of principles of natural justice - it is not found that the show cause notice issued is without jurisdiction or the authority is not vested with the power to investigate the matter and issuance of show cause notice for alleged incorrect availing of input tax credit. There are no substance in the writ petition and it is hereby dismissed.
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