Transitional CENVAT credit survives portal-related filing delays, while fraud demands and penalties require evidence and proper notice.
Case-Laws
GST
Transitional CENVAT credit under section 140(1) remains available where an undisputed balance is declared in a timely TRAN-1 and an outstanding ER-1 return is filed at the first available opportunity after departmental portal failures prevented timely filing. Such filing constitutes substantial compliance; procedural requirements cannot defeat substantive credit when compliance is impossible for reasons beyond the taxpayer's control. Section 75(7) confines adjudication to the grounds in the show-cause notice, so a fraud-based penalty cannot be imposed when the notice proposes only a non-fraud penalty. A demand under section 74(1) requires evidence of fraud, wilful misstatement or suppression to evade tax; disclosed portal difficulties and unsupported allegations do not establish those grounds.
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