Penalty for estimation of income and disallowances for tax non-deduction clarified: estimation-based penalties not sustainable; additions without conc...
Managerial remuneration disallowance under s.40A(2)(b) challenged over alleged tax-avoidance; appellate decision restored deletion of addition for dir...
Classification of imported goods as electronic cigarette versus tobacco product reversed for lack of proof; order set aside for jurisdictional overrea...
HC examined the blocking of petitioner's Electronic Credit Ledger (ECL) under Rule 86A of the GST Rules, 2017. It held that Rule 86A permits only temporary restriction on debiting input tax credit (ITC) where there is reason to believe the ITC is fraudulently availed or ineligible, and does not contemplate "negative blocking" beyond the credit actually available in the ECL. The Court endorsed earlier views of other HCs that no prior show cause notice is required for such emergent action, but clarified that excess blocking is impermissible. Issues of wrongful availment/utilisation of ITC must be adjudicated under Sections 73/74. Petition allowed.
HC examined the blocking of petitioner's Electronic Credit Ledger (ECL) under Rule 86A of the GST Rules, 2017. It held that Rule 86A permits only temporary restriction on debiting input tax credit (ITC) where there is reason to believe the ITC is fraudulently availed or ineligible, and does not contemplate "negative blocking" beyond the credit actually available in the ECL. The Court endorsed earlier views of other HCs that no prior show cause notice is required for such emergent action, but clarified that excess blocking is impermissible. Issues of wrongful availment/utilisation of ITC must be adjudicated under Sections 73/74. Petition allowed.
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