TaxTMI 
TaxTMI 
2022 (4) TMI 1096
X X X X Extracts X X X X
X X X X Extracts X X X X
....es 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 the learned counsels for the parties. 6. Controversy being raised in th....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ilment 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 does not relate to the input tax credit available on the date of Rule 86-A being invoked. The word "has....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 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 accept the further submission advanced by the learned counsel for the petitioner that there is any violation of the principle when a le....