2025 (7) TMI 1193 - HC - GST

Failure on the part of the concerned respondents to implement the order passed by the Assistant Commissioner u/s 143 of the WBGST/CGST Act 2017 - inadmissible ITC - HELD THAT - It is amply clear that the claim of cenvat credit of the petitioner was allowed to the extent of Rs. 25, 30, 178/- as ITC by deducting the disallowed amount of Rs. 14, 454.65/- from the original claim of Rs. 25, 44, 632.62/-. Since records reveals that transitional cenvat credit amount of Rs. 1, 98, 870/- for the period of November 2017 had been credited on 26th December 2017 in the CGST ledger during the filing of earlier Tran-1 on 26th December 2017 the claim on account of cenvat credit was allowed to the extent of Rs. 23, 31, 308/- as ITC by subtracting 1, 98, 870 from 25, 30, 178/-. It appears that while implementing the said order the authorities may have erroneously subtracted the sum of Rs. 1, 98, 870/- from the allowable cenvat credit as ITC of 23, 31, 308/-. Though the entire records are not available and though Mr. Dey could not enlighten this Court as to whether the amount of Rs. 23, 31, 308/- had in fact being credited to the petitioner on account of cenvat credit as ITC if such amount has not already been credited to forthwith credit the same to the petitioner s ledger - Insofar as SGST credit is concerned to the extent of Rs. 19, 019.7/- the same should also be credited to the petitioner s ledger having regard to the directions contained in the order dated 24th February 2023 if the same has already not been credited. However the respondents are directed to verify the petitioner s ledger before effecting such credit. The writ petition is disposed of.

Summary

ISSUES:

Whether the respondent authorities erred in deviating from the order passed under Section 143 of the WBGST/CGST Act, 2017 by subtracting Rs. 1,98,870/- from the admissible input tax credit (ITC) amount without filing an appeal.Whether the petitioner is entitled to the credit of Rs. 19,019.7/- in SGST ledger as directed by the order under Section 143 of the said Act.Whether the authorities are obligated to implement the order dated 24th February, 2023 fully and correctly, including proper ledger crediting of allowed amounts.

RULINGS / HOLDINGS:

The Court held that the authorities cannot deviate from the order passed under Section 143 of the WBGST/CGST Act, 2017, especially when no appeal has been preferred against such order, and if the amount of Rs. 23,31,308/- has not been credited, it must be forthwith credited to the petitioner's CGST ledger.The Court directed that the SGST credit of Rs. 19,019.7/- allowed by the order must be credited to the petitioner's ledger if it has not already been done, subject to verification of the petitioner's ledger by the respondents.The Court concluded that the writ petition does not survive after the directions to implement the order correctly and disposed of the petition accordingly, with no order as to costs.

RATIONALE:

The Court applied Section 143 of the WBGST/CGST Act, 2017 which empowers the proper officer to pass orders regarding transitional credit claims.The Court relied on the operative portion of the order dated 24th February, 2023, which allowed the petitioner's claim of cenvat credit and SGST credit in specific amounts after deducting amounts already credited in earlier filings.The Court emphasized that since no appeal was filed against the order, the respondent authorities are bound to implement it strictly without unauthorized deductions.The Court recognized a possible error in the implementation by the authorities in subtracting Rs. 1,98,870/- again from the allowed credit and corrected this by directing immediate credit if not already done.No dissent or doctrinal shift was noted; the decision follows established principles of statutory compliance and enforcement of orders under the CGST framework.