Namoshivai Apparels Pvt Ltd Vs Union Of India
Date: March 17, 2023
Subject Matter
Blocking the ITC beyond the period of one year by unblocking if after the expiry of one year and immediately blocking it thereafter would prima-facie amount to overreaching the provisions of Rule 86A(2)
Summary
One of the questions that arises for consideration of this Court is whether the respondent can continue blocking the Input Tax Credit beyond the period of one year by unblocking if after the expiry of one year and immediately blocking it thereafter. Prima facie, the same would amount to overreaching the provisions of Rule 86A(2) of the Central Goods and Services Tax Rules, 2017. Since the questions raised are essential questions of law, no further time will be granted to the parties to complete the pleadings. We appoint Mr. Sujit Ghosh, Advocate as an Amicus Curiae to assist this Court with regard to the aforesaid issue. List on 01.05.2023.
1. Exemption allowed, subject to all just exceptions.
2. The application stands disposed of.
WP.(C) 3365/2023 & CM APPL. 13054/2023
3. Issue notice.
4. Learned counsel for the respondent accepts notice.
5. One of the questions that arises for consideration of this Court is whether the respondent can continue blocking the Input Tax Credit beyond the period of one year by unblocking if after the expiry of one year and immediately blocking it thereafter.
6. Prima facie, the same would amount to overreaching the provisions of Rule 86A(2) of the Central Goods and Services Tax Rules, 2017.
7. Counter affidavit, if any, be filed within a period of two weeks.
8. Rejoinder, if any, be filed within a period of one week thereafter.
9. Since the questions raised are essential questions of law, no further time will be granted to the parties to complete the pleadings.
10. We appoint Mr. Sujit Ghosh, Advocate as an Amicus Curiae to assist this Court with regard to the aforesaid issue.
11. Learned counsel for the petitioner shall provide a copy of this petition as well as W.P.(C) 10727/2022 to the learned Amicus Curiae.
12. List on 01.05.2023.