GST ITC Blockage Cannot Continue After Appeal and Pre-Deposit: Madras HC

Arise Steels Private Limited Vs Assistant Commissioner (ST) (Madras High Court) In a recent order, the Madras High Court has ruled that a taxpayer’s blocked Input Tax Credit (ITC) must be unblocked if they have filed an appeal against an assessment order by depositing 10% of the disputed tax amount. The ruling came in a writ petition filed by Arise Steels Private Limited, which challenged the blocking of its electronic credit ledger. The company’s ITC, totaling over Rs. 3.2 crore, was blocked by the tax authorities under Rule 86A of the CGST Rules, 2017. The blocking was initiated thr...