TaxTMI 
TaxTMI 
2025 (11) TMI 359
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.... no.2 to unblock the Input Tax Credit (ITC) amounting to Rs. 13,96,220/- available in the Electronic Credit Ledger (ECL) of the petitioner." 3. On the strength of e-mail communication dated 24.07.2025 issued by Goods and Services Tax Network (GSTN) to the petitioner, it has been stressed, 'reasons to believe' required to be 'recorded in writing' under Rule 86A of the U.P.G.S.T. Rules 2017 (hereinafter referred to as the 'Rules') have not been recorded. To the extent that jurisdictional requirement has not been fulfilled, the consequence of blocking of Input Tax Credit (ITC in short), visited on the petitioner, is also without jurisdiction and grossly illegal. 4. In such circumstances, we required learned Standi....
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....ued under Rule 86A of the Rules nor its consequence may have been visited on the petitioner unless 'reasons to believe' had been first 'recorded in writing', by the officer empowered under the said Rules, namely, respondent no.2. 8. On the other hand, learned Standing Counsel states, no opportunity of hearing is required to be granted under Rule 86A of the Rules. However, it has been submitted, the petitioner has a right to object to blocking of ITC, by filing appropriate representation before the Commissioner under Rule 86A(2) of the Rules. 9. Having heard learned counsel for the parties and having perused the record, in face of record as produced by learned Standing Counsel, in absence of any prayer in that regard, n....
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....the turnover of a dealer has escaped assessment, it can take action under the section. Reasonable grounds necessarily postulate that they must be germane to the formation of the belief regarding escaped assessment. If the grounds are of an extraneous character, the same would not warrant initiation of proceedings under the above section. If, however, the grounds are relevant and have a nexus with the formation of belief regarding escaped assessment, the assessing authority would be clothed with jurisdiction to take action under the section. Whether the grounds are adequate or not is not a matter which would be gone into by the High Court or this Court; for the sufficiency of the grounds which induced the assessing authority to act is not a ....
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....td. v. State of Rajasthan, (1980) 4 SCC 71 : 1980 SCC (Tax) 348]. 30. In case of there being a change of opinion, there must necessarily be a nexus that requires to be established between the "change of opinion" and the material present before the assessing authority. Discovery of an inadvertent mistake or non-application of mind during assessment would not be a justified ground to reinitiate proceedings under Section 21(1) of the Act on the basis of change in subjective opinion (CIT v. Dinesh Chandra H. Shah [CIT v. Dinesh Chandra H. Shah, (1972) 3 SCC 231] ; CIT v. Nawab Mir Barkat Ali Khan Bahadur [CIT v. Nawab Mir Barkat Ali Khan Bahadur, (1975) 4 SCC 360 : 1975 SCC (Tax) 316])." 13. Reliance placed by learned Standing Couns....
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....ist material that may give rise to the belief necessary to be recorded by respondent.2 but that the reasons must spring from material on record/leading to the belief. It necessarily involves application of mind by the competent authority, here respondent no.2, to the facts brought before it. 16. Even though exercise of power under Rule 86A(1) of the Rules remained ex-parte to the assessee, yet, more especially for that reason, the requirement of the statute to first record 'reasons to believe', 'in writing' must be strictly enforced on the revenue authorities. 17. It may not forgotten, granting ITC and maintaining its chain is the soul of a successful GST regime. Therefore, any doubt or suspicion alone may not lead an ....