UMICORE AUTOCAT INDIA PRIVATE LIMITED

Vs.

UNION OF INDIA & ORS.

WRIT PETITION NO. 463 of 2024

HIGH COURT – Bombay

DATED: 10.07.2025

Citation: 2025 Taxo.online 1551

 

Transfer of unutilized ITC under Section 18(3) of the CGST Act cannot be denied merely because the transferor and transferee are registered in different States.

Transfer of unutilized ITC on merger across States – No restriction under Section 18(3) of CGST Act or Rule 41 – Petitioner newly formed entity due to amalgamation sought transfer of unutilized ITC from transferor entity registered in another State – GST portal denied transfer citing system-generated restriction that both transferor and transferee must be registered in same State/Union Territory – Court held restriction does not emanate from either Section 18(3) of CGST Act, 2017 or Rule 41 of CGST Rules, 2017 – Statutory framework permits transfer of unutilized ITC in cases of merger, demerger, sale, or transfer of business, without imposing any condition related to territorial jurisdiction of GST registrations – Legislature intention must be derived strictly from language used in statute and it is impermissible to read into law limitations not expressly provided – Court emphasized GST law allows seamless credit transfer to facilitate ease of doing business and continuity of tax compliance in business reorganizations – Portal-based denial of ITC transfer on non-statutory grounds is unjustified and contrary to the scheme of the Act

 Held: Writ Petition made absolute – Court permit manual transfer from e-credit ledger of transferor to petitioner within six weeks.

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