Petitioner challenged ITC blocked by department u/s 86A of CGST Rules as it is contrary to the scheme laid down in Rule 71 of the CGST Rules
Rule 86A of the CGST Rules, 2017— Blocking of Input Tax Credit — The petitioner challenged the impugned ITC block dated 25th January, 2020 in his electronic credit ledger and impugned notice dated 28th January, 2020, on the basis of a mismatch in the ITC claimed in GSTR-3B and that appearing in GSTR-2A during the period April, 2018 - March, 2019. The petitioner submitted that the said ITC was claimed on account of purchases made from Indian Oil Corporation against duly issued tax invoices. The impugned ITC block dated 25th January, 2020 had been undertaken without issuance of any prior notice or reasoned order and the conditions mentioned in Rule 86A are not satisfied in the present case.
Held that:-The Hon’ble High Court directed the respondent to treat the petition as a representation and decide the same by way of a reasoned order within four weeks, in accordance with law, after giving an opportunity of hearing. Till that time, the parties are directed to maintain status quo with regard to the impugned notice dated 28th January, 2020.
Petitioner challenged ITC blocked by department u/s 86A of CGST Rules as it is contrary to the scheme laid down in Rule 71 of the CGST Rules
Rule 86A of the CGST Rules, 2017— Blocking of Input Tax Credit — The petitioner challenged the impugned ITC block dated 25th January, 2020 in his electronic credit ledger and impugned notice dated 28th January, 2020, on the basis of a mismatch in the ITC claimed in GSTR-3B and that appearing in GSTR-2A during the period April, 2018 - March, 2019. The petitioner submitted that the said ITC was claimed on account of purchases made from Indian Oil Corporation against duly issued tax invoices. The impugned ITC block dated 25th January, 2020 had been undertaken without issuance of any prior notice or reasoned order and the conditions mentioned in Rule 86A are not satisfied in the present case.
Held that:-The Hon’ble High Court directed the respondent to treat the petition as a representation and decide the same by way of a reasoned order within four weeks, in accordance with law, after giving an opportunity of hearing. Till that time, the parties are directed to maintain status quo with regard to the impugned notice dated 28th January, 2020.