Section 16 of the CGST Act and Rule 86A of CGST Rules, 2017— Blocking of Input Tax Credit -– The petitioner prayed for direction for striking down Rule 86A in so far as it gives power to block the ITC at no fault of the registered recipient and declare it ultra vires of Section 16 of the Act, 2017; direction to the respondents to allow petitioner to utilize the ITC until it is proved that the supplier did not pay the tax after following up the provision of Rules, 2017.
Held that:- The Hon’ble High Court issued notice to the respondents returnable on 14th September 2020.—Kalpsutra Gujarat Vs. The Union of India [2020] 28 TAXLOK.COM 022 (Gujarat)