Writ review declined where GST input tax credit dispute was already pending before the statutory adjudicating authority.

A writ challenge to blocking and reversal of input tax credit under Rule 86A was not entertained on merits because a statutory proceeding under Section 73 of the Jharkhand GST Act, read with Rule 142(1A), was already pending. The court indicated that the assessee should place invoices, records and other relevant material before the adjudicating authority and have the credit dispute decided in that proceeding, rather than seek writ review at that stage. The matter was thus left to the competent authority for statutory adjudication.

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Issues: Whether the writ petition challenging blocking and reversal of input tax credit should be entertained on merits when proceedings under the Jharkhand Goods and Service Tax Act, 2017 were already pending under Section 73.

Analysis: The dispute arose from notices issued for reversal of input tax credit under Rule 86A of the Jharkhand Goods and Service Tax Rules, 2017, with interest under Section 50 of the Jharkhand Goods and Service Tax Act, 2017. During the writ proceedings, it was noticed that proceedings under Section 73 of the Jharkhand Goods and Service Tax Act, 2017 read with Rule 142(1A) of the Jharkhand Goods and Service Tax Rules, 2017 had already been initiated. In that situation, the proper course was for the petitioner to appear before the adjudicating authority, place invoices, records and other relevant material, and have the matter decided in the statutory proceeding rather than have the writ court examine the merits at that stage.

Conclusion: The writ court declined to enter into the merits and directed the petitioner to participate in the pending statutory proceeding under Section 73 before the Deputy Commissioner of State Taxes.

Final Conclusion: Judicial intervention was declined at the writ stage in view of the pending statutory adjudication, and the petitioner was left to work out the dispute before the competent authority.

Ratio Decidendi: Where a statutory adjudication under the GST framework is already pending, the writ court should ordinarily refrain from examining the merits of the credit dispute and require the assessee to pursue the statutory remedy before the competent authority.

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