Revenue Department Can’t Block ITC Beyond One Year: Karnataka HC

S.P. Metals Vs Assistant Commissioner of Central Tax (Karnataka High Court) Introduction: In a recent judgment, the Karnataka High Court, in the case of S.P. Metals vs Assistant Commissioner of Central Tax, ruled that the Revenue Department is not authorized to block Input Tax Credit (ITC) for more than one year, as per Rule 86A of the Central Goods and Services Tax Rules, 2017. The court directed the immediate unblocking of ITC for the petitioner, S.P. Metals. Hon’ble Karnataka High Court allowed the writ petition and held that as per sub-rule (3) of Rule 86A of the Central Goods and Servic...