TaxTMI 
TaxTMI 
2026 (3) TMI 724
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....lectronic Credit Ledger of the petitioner. The petitioner has sought for certain other allied reliefs. 2. Learned counsel for the petitioner submits that the show-cause notice at Annexure-A calls upon the petitioner to show cause as to why the supply of goods in favour of M/s. Million Lights by passing on the fraudulent Input Tax Credit, without underlying supply of goods, be treated as irregular and as to why action ought not to be initiated under provision of Rule 86A of Central Goods and Service Tax / Karnataka Goods and Service Tax Rules, 2017 (for short 'CGST/KGST Rules'). 3. It is the contention of the petitioner that Rule 86A can be invoked where the petitioner has availed of ITC wrongfully and cannot be pressed where a....
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....by a registered person who has been found non-existent or not to be conducting any business from any place for which registration has been obtained; or (ii) without receipt of goods or services or both; or b) the credit of input tax has been availed on the strength of tax invoices or debit notes or any other document prescribed under rule 36 in respect of any supply, the tax charged in respect of which has not been paid to the Government; or c) the registered 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 t....
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.... strength of documents issued by a registered person who has been found to be nonexistent or not conducting any business from any place for which registration has been obtained or if it has been availed without receipt of goods or services or both. Further, credit can be blocked under Rule 86A if the tax charged in respect of any supply has not been paid to the Government, but credit of input tax has been availed on the strength of documents relating to such supply. The credit can also be blocked if the registered person availing the credit is found to be non-existent at the registered place of business or is not in possession of the prescribed documents for availing credit of input tax. In no other circumstances can the power under Rule 86....