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GST – Section 140(1) of CGST Act, 2017 & Rule 117 of CGST Rules, 2017 - Interpretation and Judicial scrutiny of Transitional provisions of the CGST Act - entitlement of the assessee to claim Transitional credit on Cenvat credit of service tax paid long after the appointed date of July 1, 2017 – Revenue in appeal against Appellate Authority order on the ground that since such payment of service tax was not made prior to the appointed date and said credit was reflected in the electronic ledger account as on the appointed date, in terms of Section 140 of the CGST Tax Act the assessee was not entitled to claim any credit therefor and the appellate order erred in permitting the same – HELD - Revenue reads the provision to imply that only the amount of cenvat credit due to a registered person as on the appointed date could be taken credit of - As a corollary, the Revenue contends that since the service tax component in this case was paid only on October 2017, Cenvat credit for such amount could not have been availed of by the assessee - the essence of Section 140(1) of the CGST Act is that if a matter is reflected in the return for the relevant period, due credit therefor may be taken as long as the return has been filed in accordance with the existing law and in the manner prescribed thereby - there was a statutory mechanism for filing the service return and making up for the delay by paying a nominal additional amount. This was the procedure prescribed by the existing law, within the meaning of Section 2(48) of the CGST Act and which was saved by Section 174 thereof - The Revenue’s contention that the tax component or duty component for which Cenvat credit is sought must have been paid prior to the appointed date, is not supported by the clear words of Section 140(1) of the Act of 2017 - the eligibility to obtain Cenvat credit depends on what is indicated in the return and as long as the return is in order, the cenvat credit cannot be denied - There is no dispute in this case that the return filed was in order. The eligibility or entitlement to obtain cenvat credit, in terms of Section 140(1) of the CGST Act is based on whether the matter is reflected in the return which is filed as per the existing law in the manner prescribed and not on when the return was filed or whether the duty or tax for which cenvat credit is claimed had been deposited prior to the appointed date - the Revenue’s limited challenge to the appellate order pertaining to cenvat credit claimed by the respondent assessee fails - Since an arguable case was put forth on the interpretation of a somewhat unhappily worded transitional provision, no order is made as to costs – writ petition is dismissed
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