TaxTMI 
TaxTMI 
2022 (4) TMI 1096
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.... (i) Mandamus directing the respondent authorities to forthwith unlock the electronic credit ledger, which has been debited by Rs. (-) 1,23,59,000/- (Annexure No.2); (ii) Declaration holding that negative blocking of credit by respondent no.2 of Rs. 1,23,59,000/- was illegal; (iii) Mandamus directing the respondent authorities to pay interest @ 18% for illegally blocking the credit; 3. Learned counsel for the petitioner submits that blocking of input tax credit under Rule 86A of CGST/UPGST Rules, 2017 has resulted in negative blocking, which cannot be done. 4. Learned Standing counsel as well learned counsel for the respondent no.4 support the impugned order. 5. We have carefully considered the submissions of th....
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....he context of the infringement being alleged by the revenue. i.e. fraudulent availment or availment dehors eligibility to the same. Consequently, if an assessee is found to have either fraudulently availed or to have availed such 'input tax credit' that he was ineligible to avail, he may expose himself to action under the Rule, in future, when such an event may come to the knowledge of the authorized officer, subject of course to the rule of limitation. 15. Thus the word 'available' used in the first part of sub-Rules of Rule 86-A would always relate back in time when the assessee allegedly availed input tax credit either fraudulently or which he was not eligible to avail. It does not refer to and, therefore, it doe....
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....e has chosen the words 'not allow debit'. To not allow debit and to appropriate the same are two different things in the context of the Statute. They lead to different consequences. While the first only creates a lien in favour of the revenue by blocking utilization of that amount, appropriation of an amount would necessarily involve transfer of title over the money with the revenue. Plainly, the Rule does not contemplate or speak of such a consequence. 24. Since, according to us, the provision of Rule 86-A is not a recovery provision but only a provision to secure the interest of revenue and not a recovery provision, to be exercised upon the fulfillment of the conditions, as we have discussed above, we are not inclined to ....
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.... the input tax credit and the said authority would be under an obligation to decide the objection within a time bound period. 5. In view of the aforesaid, we disposed off all these writ petitions giving liberty to the petitioners to submit objections before the Commissioner or the authorisied Officer, as the case may be, under Rule 86 A(2) of the C.G.S.T. /U.P.G.S.T. Rules, 2017, within two weeks from today alongwith certified copy of this order and in the event objections are submitted by the petitioners within the stipulated period, the same shall be decided by the concerned Authority Officer in accordance with law, by a speaking and reasoned order, within next three weeks, after affording reasonable opportunity of hearing to the....