Bombay HC Quashes Order Blocking ITC Credit Ledger for Violating Natural Justice

Bhansali Industries Vs Union of India Through the Secretary (Bombay High Court)

The petitioner is a registered tax payer. It was issued a show cause notice, inter alia, denying input tax credit on the ground that the registration of the supplier has been cancelled (with retrospective effect). The petitioner replied. However, the ITC credit ledger came to be blocked and order confirming the demand came to be passed. The same were challenged in writ petition.

The Hon’ble Bombay High Court set aside the impugned order and allowed the petition.

It held:

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