Transitional Credit as Vested Right Cannot Be Denied on Procedural or Technical Grounds: CESTAT Approves Service Tax Refund Under RCM

The CESTAT has ruled that transitional credit, a vested right, cannot be denied on procedural or technical grounds. This decision came while approving a service tax refund under the Reverse Charge Mechanism (RCM). The appellant had claimed transitional credit for service tax paid before the GST implementation, which was denied by tax authorities due to procedural lapses. The tribunal held that such vested rights should not be forfeited due to mere procedural or technical errors, emphasizing the principle of substantive justice. This ruling is significant for taxpayers as it underscores the importance of transitional credits and provides relief against rigid procedural disallowances.