Merger-related input tax credit transfers raise statutory eligibility questions requiring scrutiny of prescribed transfer procedures.
Case-Laws
GST
Transfer of input tax credit in a merger requires examination of the interaction between section 16(2), section 18(3) and rule 41, particularly whether a transferee may directly avail credit reflected against the transferor's GSTIN without using the prescribed transfer mechanism. The issue concerns whether that mechanism is mandatory and whether non-compliance is procedural or substantive. Statutory interpretation of eligibility and transfer requirements constitutes a question of law for purposes of Division Bench jurisdiction under section 109(8), rather than merely a factual dispute. The appeal is to be heard by a Division Bench on merits.
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