Order Date – 17 October 2023

Parties: M/s.Indiabulls Construction Limited Vs The Assistant Commissioner (ST) Medavakkam Assessment Circle and The Assistant Commissioner (ST) Velachery Assessment Circle

Facts –

• The Petitioner, M/s. Indiabulls Construction Limited, are entitled for TDS in pre-GST era, which they transferred and utilised the same in the form of Input Tax Credit (ITC) as per the TNGST Act. 
• They received a show cause notice in the year 2019, and again for the same matter in 2020, they file the reply and also, they had appeared personally, but no order was passed till date. Once again, the present show cause notice came to be issued on 29.09.2023, whereby the respondent had permitted the petitioner to partly convert the ITC.

Issue –

• Whether TDS in pre-GST era can be transferred and utilise the same in the form of Input Tax Credit?

Order –

• The Single Bench of Hon’ble High Court observed that issue is with regard to the transfer of TDS from Pre-GST era to Post-GST era has been settled by virtue of an order passed by this Court in a batch of writ petition in DMR constructions vs The Assistant Commissioner, Commercial Tax Department [W.P.Nos.9991 of 2020,etc.,] vide order dated 26.02.2021, wherein, it has been categorically held that the Assessee is entitled for transfer of TDS from Pre-GST era to Post-GST era.
• In view of the above, it was held that issuing the impugned show cause notice by denying the transfer of TDS from the pre-GST era to post-GST era is illegal and the same is contrary to the law laid down by this Court.