Tvl.Krishna Impex Vs Commissioner of GST and Central Excise (Madras High Court)
Madras High Court held that as per rule 86A(3) of the Central Goods and Services Tax Rules, 2017 [CGST Rules] blocking of input tax credit available in electronic credit ledger lapses after a period of one year from the date of blocking.
Facts- The relief sought in the present writ petition is to direct the respondents to unblock the petitioner’s Input Tax Credit (ITC) under the TNGST Act amounting to Rs.11,70,726 and consequently, permit the petitioner to debit the corresponding ITC from its Electronic Credit Ledger.
In the present case, the GST Department had already blocked the petitioner’s ITC pertaining to the purchase made from one M/s.Sree Sathya Traders during August 2019. Aggrieved over the same, the petitioner had filed a writ petition, seeking to issue appropriate direction to the GST Department to unblock its ITC. Subsequently, the petitioner’s ITC was unblocked on 07.04.2022. While so, the GST Department has sent an e-mail dated 15.04.2022 to the petitioner, intimating that ITC available in petitioner’s Electronic Credit Ledger has been blocked purportedly by the 2nd respondent on 15.04.2022. After the expiry of one year’s time restriction ceases to have effect under Rule 86A(3) of the Central Goods and Services Rules, 2017 (for brevity, ‘CGST Rules, 2017).
