Gujarat HC Blocks Arbitrary ITC Freezing, Upholds Rights

S. S. Industries Vs Union of India (Gujarat High Court) In a significant ruling concerning the powers of GST authorities to block Input Tax Credit (ITC) and retain deposits during investigations, the Gujarat High Court has emphasized adherence to statutory procedures and principles of natural justice. The judgment, delivered in the consolidated cases of S. S. Industries Vs. Union of India and Special Civil Application No. 8163 of 2020, addresses the interpretation and scope of Rule 86A of the CGST Rules, which governs the blocking of ITC. The core issues before the court were twofold: first, t...