Sunny Jain Vs Union of India
Date: December 5, 2022
Subject Matter
Restrictions on utilization of ITC u/r 86A cannot extend beyond the period of one year
Summary
In terms of Rule 86A(3) of the CGST Rules, the restrictions imposed under Rule 86A of the CGST Rules cannot extend beyond the period of one year from the date of imposing such restriction. Thus, there may be merit in the petitioner’s contention…
1. The petitioner has filed the present petition impugning the action of the respondents in blocking the Input Tax Credit (hereafter ‘ the ITC ’) of ₹1,37,17,022/- (IGST of ₹1,29,80,631/- and CGST of ₹7,36,391/-), which is credited in the Electronic Credit Ledger (hereafter ‘ ECL ’) of the petitioner. The said ITC was blocked on 11.02.2020. 2. The respondents do not controv…