2026 (1) TMI 1001

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....spondents. 2. With the consent of the learned counsel for the petitioner and the learned Junior and Senior Standing Counsel for the respondents, this Writ Petition is being disposed of at the time of admission. 3. The petitioner is before this Court against blocking of their Input Tax Credit to the tune of Rs. 10,16,827/- by the impugned communication dated 08.08.2025 bearing Ref No. BL3308250000163 passed by the 1st respondent. 4. The impugned communication of the 1st respondent is based on an information sent to the 1st respondent vide Ref No. GEXCOM/AE/MISC/660/2022-AE dated 05.08.2025 by the office of the Principal Commissioner of GST & Central Excise, Coimbatore to take appropriate action, which in turn relied upon the communi....

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.... CBE IIIC 4 33AABFU9368E1Z1 United Enterprises 36,50,888 6,57,160 Division CBE III, Range - CBE IIIE 5 33AFXPD4140G1ZL Masani Industries 31,01,455 5,58,262 Division CBE III, Range CBE IIIE 6 33AAYFS9871M1ZZ Sri Murugan Foundry Equipment 23,77,233 4,27,902 Division CBE I Range CBE 1A 7 33ACCFS8773Q1ZA Sree Sakthi Engineering Company 17,51,728 3,15,311 Division COONOOR Range KARAMADAI 8 33AARFA2254R1ZZ Atchya Automation 17,14,530 3,08,615 Division CBE I Range CBE ID 9 33AAMFS6486Q1Z6 Sree Sakthi Equipments Company 13,10,655 2,35,918 Division COONOOR Range KARAMADAI 10 33AAHFS0646M1Z1 Sri Rang Industries 10,86,390 1,95,550....

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....ercising power under rule 86A.The remedy of disallowing debit of amount from electronic credit ledger being, by its very nature, extraordinary, has to be resorted to with utmost circumspection and with maximum care and caution. It contemplates an objective determination based on intelligent care and evaluation as distinguished from a purely subjective consideration of suspicion. The reasons are to be on the basis of material evidence available or gathered in relation to fraudulent availment of input tax credit or ineligible input tax credit availed as per the conditions/ grounds under sub-rule (1) of rule 86A." 8. The learned counsel for the petitioner also draws the attention of this Court to a detailed decision of the Hon'ble Karnataka....

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....and have not independently formed an opinion on the likely additions to be made during assessment proceedings. In the light of existence of a legal mandatory pre-requirement and precondition of recording of formation of opinion which is in pari-materia with "reasons to believe", it was incumbent upon the officer to arrive at his own satisfaction and not borrowed satisfaction by proper application of mind; the respondents have proceeded solely on the basis that the supplier has been found to be non-existent or not to be conducting any business from the place which it has obtained registration, has blocked the input tax which is impermissible in law without checking the genuineness or otherwise of the transaction and consequently, the impugne....