Blocking of ITC Ledger Is Not Recovery: Rajasthan HC Clarifies

Jai Bajrang Steel Vs State of Rajasthan (Rajasthan High Court) Jai Bajrang Steel’s input tax credit (ITC) ledger was blocked by authorities, a move challenged on the grounds it occurred prior to an appeal against an adjudication order dated August 30, 2024, rectified on November 28, 2024. The petitioner argued that the blocking happened without a hearing. The Rajasthan High Court noted that Jai Bajrang Steel had neither paid the adjudicated tax nor filed an appeal. While Section 107 of the RGST/CGST Act allows appeals, no stay of demand was in place. The court stated that blocking the I...