Bombay HC says Transitional Credit Cannot Be Denied for Wrong TRAN-1 Classification

The Bombay High Court held that where the eligibility and quantum of transitional credit are not disputed, the credit cannot be denied merely because the taxpayer claimed it under an incorrect provision of Section 140 of the CGST Act. Treating the error in Form TRAN-1 as a substantive ground for disallowance would amount to denying an otherwise admissible credit on a technical ground. The Court accordingly quashed the appellate order confirming reversal of ₹6.29 crore.