ITC cannot be blocked by GST Department without written communication of reasons to taxpayer: High Court

Petitioner:

Petitioner seeks direction to the respondent to remove the block on Input Tax Credit (ITC).

The petitioner states that his ITC was blocked by the respondent by issuing a text message on 11.12.2023.

Petitioner submits that the respondent acted in contravention of Rule 86A of the GST Rules.

Revenue:

Learned Government Advocate submits that a show cause notice was issued subsequently to the petitioner on 26.12.2023. She also submits that even prior to receipt of such show cause notice, the petitioner submitted an explanation on 20.12.2023. Therefore, she contends that no prejudice was caused to the petitioner and that the response of the petitioner is under consideration. Besides, she contends that if the petitioner is permitted to utilize the ITC, at this juncture, revenue would be put to loss.

High Court:

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Input Tax Credit

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