M/S. Malabar Cements LTD. vs. The Assistant Commissioner
Held
The High Court upheld the Commissioner's decision, stating that Section 140(5) of the CGST Act requires prior permission from the Commissioner to avail transitional credit beyond the initial 30 days, within a further 30 days. Since the appellant failed to obtain this permission and filed a condonation application five years late, the Commissioner rightly rejected it, making the transitional credit ineligible.
Facts
Malabar Cements Ltd. availed transitional credit under GST for duties/taxes paid under erstwhile laws, including `10,10,998/- for input services received post-GST but taxed pre-GST. While recording details within the extended 30-day period under Section 140(5) proviso, they failed to obtain prior Commissioner's permission. Their application for condonation of delay was filed five years late, which the Commissioner rejected, leading to a demand for the credit.
Key Issues
Whether the appellant was entitled to transitional credit under Section 140(5) of the CGST Act without obtaining prior permission from the Commissioner for extending the limitation period. Whether the Commissioner rightly rejected the belated application for condonation of delay.
Sections Cited
Section 140, Section 140(5)
AI-generated summary — verify with the full judgment below
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE DR. JUSTICE A.K.JAYASANKARAN NAMBIAR & THE HONOURABLE DR. JUSTICE KAUSER EDAPPAGATH WEDNESDAY, THE 15TH DAY OF NOVEMBER 2023/24TH KARTHIKA, 1945 WA NO. 1971 OF 2023 AGAINST THE JUDGMENT WP(C) 12899/2023 OF HIGH COURT OF KERALA APPELLANT/PETITIONER: M/S. MALABAR CEMENTS LTD.,WALAYAR DAM POST, PALAKKAD, REPRESENTED BY ITS MANAGER (FINANCE) I/C, RAMESH BALAGOPALAN, PIN - 678624 BY ADVS. HARISANKAR V. MENON MEERA V.MENON R.SREEJITH K.KRISHNA PARVATHY MENON RESPONDENTS/RESPONDENTS: 1 THE ASSISTANT COMMISSIONER, CENTRAL TAX AND CENTRAL EXCISE, PALAKKAD DIVISION, CR BUILDINGS, METTUPALAYAM STREET, PALAKKAD, PIN - 678001 2 THE COMMISSIONER, CENTRAL TAX AND CENTRAL EXCISE, C R BUILDINGS, MANANCHIRA, KOZHIKODE, PIN - 673001 3 THE DEPUTY COMMISSIONER,CENTRAL TAX AND CENTRAL EXCISE. PALAKKAD DIVISION, C R BUILDINGS, METTUPALAYAM STREET, PALAKKAD, PIN – 678001
WA No.1971/2023 4 UNION OF INDIA REPRESENTED BY SECRETARY TO GOVERNMENT, MINISTRY OF FINANCE (DEPARTMENT OF REVENUE), NORTH BLOCK, NEW DELHI, PIN - 110001 BY ADV P.G. JAYASHANKAR THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON 15.11.2023, TH
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