HC Directs Dept. to Unblock ITC of Assessee Since Blocking of ITC Is Only for a Period of One Year Which Is Already Lapsed
- Blog|News|GST & Customs|
- < 1 minute
- By Taxmann
- |
- Last Updated on 1 July, 2024
Latest from Taxmann
Case Details: Padmavathi Electrometals (P.) Ltd. v. Assistant Commissioner of Commercial Taxes - [2024] 163 taxmann.com 744 (Karnataka)
Judiciary and Counsel Details
- S Sunil Dutt Yadav, J.
- Smt. Veena J. Kamath, Adv. for the Petitioner.
- Hema Kumar, AGA for the Respondent.
Facts of the Case
The petitioner was a registered dealer. The department had issued notice in Form GST ASMT-10 and also started proceedings for cancellation of registration. The department also blocked credit ledger in exercise of power under Rule 86A of CGST Rules, 2017.
The petitioner filed writ petition against the notice and contended that the department had blocked credit ledger and the said order had come into effect. It was also contended that the blocking of ITC was only for a period of one year but the department had still blocked credit ledger.
High Court Held
The Honorable High Court noted that as per Rule 86A(3) of the CGST Rules, 2017, the blocking of ITC is only for a period of one year. However, in the present case, the period of one year had already lapsed. Therefore, it was held that the blocking of ITC was to be set aside and consequently, the blocking of credit ledger was also to be set aside.
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied
Sign Up
To subscribe to our weekly newsletter please log in/register on Taxmann.com
Latest Books
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
