2026 (9) TMI 278

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....ceedings dated 13.09.2023, whereby the Input Tax Credit of the petitioner in the Credit Ledger has been blocked under Rule 86A of the Tamil Nadu Goods and Services Tax (TNGST) Rules, 2017. 2. The petitioner is a trader in Iron and Steel Products and possesses valid registration under the GST law. From 01.07.2017, the petitioner promptly filed the specified returns and on the supplies made by the petitioner, the amount of GST collected under both the CGST and SGST Acts, were duly paid to the Government. On 18.10.2022, the first respondent issued summons under Section 70(1) of the Acts. Based on the preliminary findings and the petitioner's non-compliance with the summons, a proposal was approved and sent for implementation. Challengin....

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....respondent, the Joint commissioner (ST) Intelligence, had issued a communication to the fourth respondent to block the Input Tax Credit of the beneficiaries of the bill traders. The petitioner has been treated as a beneficiary and a bill trader in the communication without any adjudication. The Input Tax Credit has been blocked on 27.01.2023, even before the said impugned communication, and the restriction imposed by such blockage still continues to exist. 5. Rule 86A(3) of the TNGST Rules states that the restriction imposed under Rule 86A(1) shall cease to have effect after the expiry of a period of one year from the date of imposing such restriction. The denial of debit from the Credit Ledger is endorsed as "blocked" in the Credit Ledg....