2026 (7) TMI 1262

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....sistant Commissioner of State Tax, Girgaon, Mumbai ("Impugned Orders" for short) which is the sole Respondent in the proceedings. 3. The Petitioner as stated in the Petition is a proprietorship concern having GST registration operating from Mumbai. It is engaged in the business of trading in stainless steel raw materials in the form of pipes, sheets, coils, etc. 4. Mr. Parmeet Singh, learned counsel for the Petitioner would at the outset, submit that the grievance of the Petitioner in the present case arises from the Impugned Orders passed under Rule 86A of the CGST Rules, 2017. The actions of the Respondent led to negative blocking of Input Tax Credit, which is legally impermissible. In this context, he would place reliance on the de....

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....umar Meena (IAS) Joint Commissioner of State Tax, Mazgaon, Mumbai, which is on record. 7. Mr. Mishra however, on obtaining instructions, has in his usual fairness submitted that the pivotal issue of "negative blocking" raised in this Petition stands covered by the decision of the coordinate bench of this Court in Rawman Metal & Alloys (supra). Accordingly, he would submit that the Court may pass appropriate orders in the given facts and circumstances. 8. We have heard the learned counsel for the parties and with their assistance, we have perused the record. 9. It appears that the Impugned Orders in the proceedings have been passed primarily restricting the Petitioner from utilising the Input Tax Credit in its electronic credit ledg....

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....4 decided on 21/10/2024 were duly relied on in the judgment of Rawman Metal & Alloys (supra). The decision of the Calcutta High Court in Basanta Kumar Shaw Vs. Assistant Commissioner of Revenue, Commercial Taxes and State Tax, Tamluk Charge and Others (2023) 120 GSTR 864 (Cal) relied on by the Revenue was distinguished, with reasons. 12. We find that the judgment of the coordinate bench in Rawman Metal & Alloys (supra) has been consistently followed by this Court thereafter in Hindustan Steel vs. Deputy Commissioner of State Tax O.S. Writ Petition (L) No.28684 of 2025 decided on 16 October 2025; King Enterprises vs. Union of India A.S. Writ Petition No.5094 of 2025 decided on 18 November 2025; Sandoz Metals through its proprietor Samarth....