2018 (9) TMI 433 – AUTHORITY FOR ADVANCE RULINGS, MADHYA PRADESH – 2018 (16) G. S. T. L. 645 (A. A. R. – GST) – Carry forward of CENVAT credit – transition to GST Regime – Whether the applicant is entitled to carry forward the accumulated cenvat credit as reflected in its Excise returns for the month of June- 2017 to GST regime in terms of provisions under the CGST Act, 2017, more particularly Section 140 of the CGST Act? – Whether the accumulated Cenvat Credit so carried forward, not being the credit availed under the GST regime, is required to be adjusted/restricted in the manner prescribed under Rules 42 and 43 of the CGST Rules, 2017?
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Held that:- A plain reading of Section 97(2) clearly implies that the any question relating to CENVAT credit, which falls under transitional provision, shall be out of purview of Advance Ruling. Admissibility of input tax credit, as given in Section 97(2), relates to 'input tax credit' as defined in Section 2(63) of CGST Act, 2017 read with Sec
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n and sale of electricity, having Registration No. 23AAKCS072M1ZB. The applicants have been allocated captive coal mines in the State of M.P. with a condition that the coal extracted would be exclusively used in the power generation plant of the applicant. The applicant have been granted one single registration under CGST Act, 2017 for the captive coal mines as well as power plant which are situated 14 km apart. 1.2 Prior to 1.7.2017, i.e., the appointed day for roll out of GST, the applicant had been registered with Central Excise Department under the existing Central Excise Act, 1944, whereby they were discharging Central Excise duty liability on extraction and manufacture of coal from coal mines for captive consumption, in view of the provisions of the Central Excise Act, 1944. Obviously, the applicant, during the period prior to 1.7.2017, had been availing credit of duty paid on inputs/capital goods and service tax paid on services used in or in relation to the activity of extracti
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ply'. In such circumstances, the applicant has sought Advance Ruling on following two questions : (i) Whether the applicant is entitled to carry forward the accumulated cenvat credit as reflected in its Excise returns for the month of June- 2017 to GST regime in terms of provisions under the CGST Act, 2017, more particularly Section 140 of the CGST Act ? (ii) If the answer to the above is in affirmative, whether the accumulated Cenvat Credit so carried forward, not being the credit availed under the GST regime, is required to be adjusted/restricted in the manner prescribed under Rules 42 and 43 of the CGST Rules, 2017 ? 2. Record of personal hearing : Mr. Gopal Mundra, Mr. Ravi Ghiyani and Mrs. Laxmi Vyas appeared for personal hearing on 10.5.2018 and reiterated the stand already taken in the application. He, however, informed that the applicant had already claimed the Credit under TRAN-1 which has been duly filed by them with the jurisdictional officers. 3. Department's stand
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Cenvat credit lying unutilized as balance as per the last ER-1 filed by the applicant for the month of June, 2017, in light of the provisions of Section 140 of the CGST Act, 2017 which specifically deals with the subject of Transitional Credit. 4.2 We have taken a note of the letter F.No. GST/PartyIssue/HQR JBP/2017-18 dated 10.5.2018 of the Joint Commissioner, CGST & Central Excise, Jabalpur. It is an admitted fact on record, as also transpired during the course of personal hearing, that the question raised by the applicant before the AAR had already been examined by the department as the applicant had claimed such disputed credit in their TRAN-1. 4.3 Before going into the merits of the case, it is necessary to deal with the. issue whether the application deserves to be admitted and heard on merits. In this context it is pertinent to refer to section 97(2) and section 98(2), which are following : 4.4 Section 97(2) : The question on which the advance ruling is sought under this Act
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bid and not the CENVAT carried forward in TRAN-1, which categorically pertains to pre-GST regime. Thus, we find that the question placed before us does not fall within the four corners of issues defined for seeking Advance Ruling under Section 97(2) ibid. Hence the application does not hold ground to be admitted on this count. 4.6 Further, Section 98(2) of the CGST Act, 2017 reads as under : Sec. 98 : Procedure on receipt of application (1) ………………………………… (2) The Authority may, after examining the application and the records called for and after hearing the applicant or his authorised representative and the concerned officer or his authorised representative, by order, either admit or reject the application : Provided that the Authority shall not admit the application where the question raised in the application is already pending or decided in any proceedings in the case of an applicant under any of the provisions of this Act': 4.7 Now having regard to the
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