Input tax credit rectification must be considered with a hearing, and coercive recovery stayed pending decision.

Rectification of alleged wrong availment of input tax credit had to be considered by the department in accordance with law, and the assessee was entitled to a hearing before final orders were passed. Pending that consideration, coercive recovery was stayed. The court directed expeditious disposal of the rectification application and protected the assessee from recovery action until a decision was taken on the application.

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Issues: Whether the assessee's rectification application concerning wrong availment of input tax credit was to be considered by the department and whether coercive recovery could continue pending such consideration.

Outcome: The writ petition was disposed of with a direction to consider the rectification application expeditiously in accordance with law and to afford an opportunity of hearing before passing final orders. Coercive measures for recovery were stayed until the decision on the application.

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