https://www.taxtmi.com/caselaws?id=423438 HC ruled that blocking of Input Tax Credit under Rule 86A of CGST Rules, 2017 requires the prescribed officer to have reason to believe that credit was fraudulently availed or assessee is ineligible. The impugned order was based solely on an intelligence report regarding a racket of firms indulging in fake invoicing and illicit ITC. HC held that merely recording ongoing investigation cannot sustain drastic action under Rule 86A. The order lacked material or reasons to believe the petitioner was guilty of fraudulent transactions or ineligible under Section 16 of CGST Act. Writ petition was allowed. en-us Tue, 31 May 2022 00:00:00 +0530 Thu, 03 Apr 2025 17:27:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=423438 HC ruled that blocking of Input Tax Credit under Rule 86A of CGST Rules, 2017 requires the prescribed officer to have reason to believe that credit was fraudulently availed or assessee is ineligible. The impugned order was based solely on an intelligence report regarding a racket of firms indulging in fake invoicing and illicit ITC. HC held that merely recording ongoing investigation cannot sustain drastic action under Rule 86A. The order lacked material or reasons to believe the petitioner was guilty of fraudulent transactions or ineligible under Section 16 of CGST Act. Writ petition was allowed. Case-Laws GST Tue, 31 May 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=423438