Facts
High Court’s decision The Madras High Court upon examining a plethora of judgements and while referring mainly to the Supreme Court and Delhi High Court’s decisions in Eicher Motors2 and Cellular Operators Association of India3 respectively, held that the credit of the cesses could be transitioned and utilised for payment under the GST. The High Court decided in favour of the taxpayer, challenging the denial of carry forward of credit of cesses for the following reasons:
TBM comments
This
decision of the Madras High Court is based on the principles of vested rights
accruing to a taxpayer to avail credit and the seamless flow of credit as
envisaged under GST, in the absence of specific provisions providing for
lapse of credit. However, the judgment does not clearly examine the
implication of Explanation 3 to section 140 of the CGST Act that came into
force from 1 February 2019 with retrospective effect from 1 July 2017.
Explanation 3 categorically states that the credit of cesses would not be
allowed as transitional credit under GST. Accordingly, the Revenue could
still continue to deny transition of credit of the cesses and further
litigate this issue.
|
1 Writ Petition No.4773 of 2018 & WMP Nos.5916 & 13148 of 2018 2 Eicher Motors Limited & Anr. v. Union of India [1999] (106) E.L.T. 3 (SC) 3 Cellular Operators Association of India & Others v. Union of India [W.P (Civil) No. 7837 of 2016] |
Thursday, 7 November 2019
Madras High Court allows accumulated credit of cesses from CENVAT regime to be transitioned to GST
Subscribe to:
Post Comments (Atom)
TP in an Inflationary Economy: Navigating Challenges and Adjusting Strategies
In today’s volatile economic landscape, inflationary pressures have become a significant challenge for multinational enterprises (MNEs). Th...
-
In this article, for the benefit of our reader’s we have come up with detailed FAQ on procedures of issuance, requirement of Form 15CA an...
-
Particulars in Part 1 and Part 2 of Step-2 of registration form are required to be exactly the same as reported in the TDS statement. Plea...
-
In this post, I will discuss Secretarial Standards related to Proxies under SS – 2. Right to Appoint: A Member entitled to attend and ...
-
Many of us rely on home loans to purchase residential property, but are you fully aware of how tax laws impact your financial strategy? Unde...
-
This Tax Alert summarizes a recent Circular No. 01/2025 dated 21 January 2025 (Circular) issued by the Central Board of Direct Taxes (CBDT...
-
The circular of the Board dt. 28.06.1965 No. 17 (XL-36), provides for inspection fees and fees for certified copies of assessment and...
-
Particulars Singapore Hong Kong Corporate Tax rate 17% 16.5%. Numb...
-
1. Situation I. Tax Department Summons An employee received a summons from the tax department demanding an explanation for failing to discl...
-
This is to update you about an important decision by Hon’ble Madras High Court (‘ HC ’/’ Court ’) in the case of ARS Steel and Alloy Inte...
No comments:
Post a Comment