ITC Blocking Not Interfered With as SCNs Require Individual Adjudication: Bombay HC

Karan Agencies Vs State of Maharashtra (Bombay High Court) In this case, the Bombay High Court dealt with a batch of petitions challenging show cause and pre-intimation notices issued by the tax authorities proposing action, including blocking of Input Tax Credit (ITC). The department alleged that ITC was availed on the basis of bogus invoices, non-existent suppliers, or without actual movement of goods or services. The petitioners also challenged the constitutional validity of Section 16(2)(c) of the CGST Act, contending that it imposed an unreasonable burden on recipients and violated consti...