Transfer of credit in case of merger / amalgamation is a statutory right and the same cannot be denied in absence of technical infrastructure.
The Petition was filed by Umicore Autocat India Pvt. Ltd. (‘Petitioner’) to challenge the action of the GST authorities (‘Respondent’) in restricting the transfer of unutilized input tax credit in pursuance to a merger/amalgamation, on the premise that transfer of credit under section 18(_), is prohibited from one State to another. The transferor and transferee entities were registered in different States (Goa and Maharashtra), and the portal architecture did not permit such inter-state ITC transfers.
