Deputy Director & Anr. Etc. Vs Ramesh Kumar Yadav & Anr. Etc. (Supreme Court of India)
The Hon’ble Supreme Court in Deputy Director & Anr. Etc. v. Ramesh Kumar Yadav & Anr. Etc. [SLP (C) Diary No. 31866/2025 dated July 11, 2025] held that no interference is warranted in the interim High Court order restricting ITC blocking to 10% of demand, relying on K.J. International v. State of Punjab
Facts:
Deputy Director & Anr. (“the Petitioners”) filed a Special Leave Petition challenging the interim relief granted by the Punjab & Haryana High Court to Ramesh Kumar Yadav & Anr. (“the Respondents”).
The Petitioners challenged an interim order of the Punjab & Haryana High Court whereby the Respondents were granted relief in relation to the blocking of input tax credit under Rule 86A of the CGST Rules. The High Court had relied on its earlier decision in K.J. International v. State of Punjab [CWP-22514-2023 Judgment dated October 6, 2023], wherein it was held that only 10% of the demand amount can be blocked as a pre-deposit under Section 107 for the purpose of appeal. The main writ petition in the present matter was still pending before the High Court.
Issue:
Whether the Supreme Court should interfere with the High Court’s interim order which restricts the blocking of ITC to 10% of the assessed demand amount under Rule 86A of the CGST Rules?
