On transitional ITC, GSTAT Allows Capital Goods Credit but Rejects Export Credit

Deltron claimed transitional credit for two categories: unavailed CENVAT credit on imported capital goods received after 1 July 2017, and Central Excise duty paid on goods dispatched for export before that date but exported under GST. GSTAT allowed the capital goods credit under Section 140(2), holding that the provision does not restrict the claim to 50% of the total credit. It rejected the export-related credit because the Act contains no provision permitting its transition in the circumstances presented.