Order Date - 23 July 2025

Parties: R.P. TECHSOFT INTERNATIONAL PVT. LTD. Vs. THE DEPUTY COMMISSIONER OF REVENUE (SGST OFFICER) AND ORS.

Facts -

• The appellant, R.P. Techsoft International Pvt. Ltd., filed a writ petition challenging an order dated 27.02.2023, by which its transitional credit claim under GST was rejected by the Deputy Commissioner of Revenue (State Tax Authority), Salt Lake Charge.
• The rejection was based solely on a verification report from the Central Tax Authority dated 20.02.2023, without any independent assessment by the State Tax Officer. The Single Bench dismissed the writ petition on the ground that an alternate remedy was available under the GST law.

Issue -

• Whether the State Tax Authority can reject transitional credit solely without giving due hearing or applying independent judgment?

Order -

• The Divisional Bench of the Hon’ble High Court observed that the State Tax Authority has followed clause 5.3.7 read with clause 5.3.8 of the Central Board of Indirect Taxes and Customs Circular dated 10th November, 2022 upto a particular point that is upto the stage of issuing a notice and affording an opportunity to the writ petitioner to submit their rebuttal which they have submitted on 24th February, 2023. 
• Thereafter, without taking independent decision on the matter and without considering the grounds raised in the rebuttal by the appellant/writ petitioner, the State Tax Authority appears to have been bound over the verification report of the Central Tax Authority.
• For the above reason, the appeal is allowed and the order passed in the writ petition is set aside.