ITC Blocked By Department for more than 1 Year

[Vinay Kunte]

The Department has blocked ITC on 26-01-2020 without any communication and even after 1 year the ITC is not unblocked. There have numerous exchange off letters with reconciliation statements and documentary evidence for the ITC availed since then with the Jurisdictional Deputy Commissioner of Central Tax & C.Ex. Division, in this respect.

What is the Legal action that can be pursued to get the ITC unblocked which otherwise causes great hardship in cash flow?

Please given your valuable advice and guidance.

AI Summary

Input tax credit blockage due to reporting mismatch; pursue administrative escalation and documentary reconciliation for relief.
Input tax credit was blocked after an excess claim due to misreporting import credit in GSTR 3B, causing mismatch with GSTR 2A; taxpayer furnished BOEs, challans and reconciliations but received no reason. Advisers recommend seeking formal explanation, resubmitting documentation, and escalating administratively to senior officers (including a letter to the Commissioner copying the Deputy Commissioner) and meeting officials to establish genuineness rather than immediate litigation.