In Absence of TRAN-1 Filing Evidence, Proceedings to Reverse ITC under VAT not Bad in Law: Allahabad HC

The Allahabad High Court held that in the absence of TRAN-1 filing evidence, proceedings to reverse Input Tax Credit (ITC) under the UP VAT Act are not bad in law. TRAN-1 was a form for claiming transitional credit under GST for taxes paid under the previous VAT regime. The court reasoned that if the dealer failed to provide evidence of having filed TRAN-1 to claim ITC carried forward from the VAT regime, the VAT authorities were within their rights to initiate proceedings for the reversal of such credit. This ruling emphasizes the importance of proper documentation for claiming transitional ITC under GST.