Natural justice in input tax credit blocking led to interim stay after reply and further submissions were ignored.

Blocking of input tax credit without passing any order on the taxpayer's reply and additional representations, and without affording a hearing, was found sufficient at the interim stage to justify protection against enforcement of the blocking order. The Court noted that the petitioner had responded to the notice and made further submissions, yet the impugned action was taken without considering them. The operation of the blocking order was stayed pending further proceedings.

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Issues: Whether the blocking of input tax credit without affording an opportunity of hearing, despite the petitioner having responded to the notice and filed additional submissions, warranted interim protection.

Analysis: The petitioner had replied to the notice proposing blocking of input tax credit and had also submitted additional representations, yet the impugned blocking was ordered without passing any order on those submissions and without hearing the petitioner. The Court found this sufficient, at the interim stage, to protect the petitioner against the operation of the blocking order pending further proceedings.

Outcome: The operation of the order blocking the input tax credit was stayed until further consideration.

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