2024 (2) TMI 595

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.... Petitioner : Mr. J. Ashish For the Respondent : Ms. Amirta Poonkodi Dinakaran, GA (T) ORDER The petitioner seeks a direction to the first respondent to raise the block on Input Tax Credit (ITC) to the extent of Rs. 9,90,126/-. The petitioner states that ITC to the extent specified above was blocked by the second respondent by issuing a text message on 11.12.2023. The present writ petitio....

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....e petitioner is permitted to utilize the ITC, at this juncture, revenue would be put to loss. 4. The matter hinges on Rule 86A of the TNGST Rules. The said Rule is set out below: "86A. Conditions of use of amount available in electronic credit ledger (1) The Commissioner or an officer authorised by him in this behalf, not below the rank of an Assistant Commissioner, having rea....

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....ered person availing the credit of input tax has been found non-existent or not to be conducting any business from any place for which registration has been obtained; or (d) the registered person availing any credit of input tax is not in possession of a tax invoice or debit note or any other documents prescribed under rule 36, may, for reasons to be recorded in writing, not allow debit o....

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....or such credit. The text of Rule 86A indicates two requirements: the objective satisfaction of the officer concerned and the communication of reasons for so believing in writing to the assessee concerned. While Rule 86A does not stipulate a prior notice, the language thereof and the nature of power exercised by resort thereto require the contemporaneous communication of reasons in writing to the a....