9911796707
TMI Blog2025 (3) TMI 820X X X X Extracts X X X X X X X X Extracts X X X X ..... petitioners is directed against the order dated 28th November, 2023 in W.P.A. 23893 of 2023. The appellants had filed writ petition praying for issuance of a Writ of Mandamus to quash/set aside the showcause notice dated 18th September, 2023 issued by the Assistant Commissioner of CGST & CX, Park Street Division, Kolkata South Commissionerate. Further, the petitioners sought for a direction upon the respondent no.1 to ascertain as to why the proceedings, which had been initiated since 2018 has resulted in issuance of the impugned show-cause notice dated 18th September, 2023 without considering any of the submissions of the appellants/writ petitioners from time to time. 2. The learned Writ Court by the impugned order opined that the appella ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t as a part of Opening Balance of CENVAT Credit in the Service Tax Return filed for April - September, 2016. The appellants requested the Department to allow the same as CENVAT Credit in the current year 2016-17. Much thereafter, a letter was issued to the appellants calling for various documents for the verification of the transitional credit. This was furnished by the appellants to the authority on 5th January, 2018 followed by another communication addressed to the Assistant Commissioner dated 9th January, 2018. After about more than eight months, another communication was sent by the Superintendent dated 11th September, 2018 referring to their earlier reply and pointing out certain issues and requested further reply from the appellants. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellants contended that the notice in GST DRC 01A dated 2nd March, 2023 has been issued without considering any of the objections, which have been filed by the appellants at the stage of verification of TRAN 1 and raising a demand after four years of continuous communication with the Department cannot be held to be a valid exercise and the notice was liable to be withdrawn as being without jurisdiction. 7. Further, the appellants pointed out that when it has been admitted by the Department that input tax credit availed in Table 7 was eligible for input tax credit to the appellants and further, reference of sub-table of table 7 was incorrectly filed, the question of availment of ineligible Input Tax Credit by the appellants does not arise ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tainable. 11. Thus, when a jurisdictional issue is being canvassed before us, the alternate remedy provided under the CGST Act would not operate as a restriction for this Court to decide upon the jurisdiction of the respondents to issue the show-cause notice invoking the provisions of the CGST Act. 12. The Court then proceeded to take note of Sections 140 and 174 of the CGST Act, where section 140 deals with the transitional arrangements for input tax credit and noted the purpose for introducing a transitional provision. The relevant portion of the judgment is quoted hereinbelow: "17.************* It is in this light that the transitional provisions incorporated under Chapter-XX have to be understood. The C.E.A., 1944 and the Finance Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inadmissible CENVAT Credit of the existing regime to the G.S.T. regime under section 140 of the C.G.S.T. Act without any check or proceeding against him. In this regard, the Court noted section 174 of the C.G.S.T Act and other Constitutional provisions and held: "it is obvious the new regime had to make provisions for the transactions which remained incohate under the existing law. It is also a well-settled legal position that on account of the new legislation the implementation of the G.S.T. regime could not be left to a realm of uncertainty. For a violation under the existing law, parallel proceedings could not be conducted under the existing law at the behest of jurisdictional officer and at the same time under the new law at the instan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d writ petition, was quashed. However, the respondent authorities were granted liberty to initiate proceedings under the provisions of the existing law i.e. Central Excise Act, 1944, Finance Act, 1944 read with CENVAT Credit Rules, 2004 against the petitioner therein for the relevant tax period in accordance with law. 16. The expression "in accordance with law" is added with the purpose because the liberty should not be construed to be a liberty de hors the provisions of law. 17. The learned advocate appearing for the appellants submitted that information was sought for under the provisions of the Right to Information Act, 2005 as to whether any appeal has been filed against the judgment passed in the case of Usha Martin Limited (supra) a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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