M/S. Sri Saravanaa Building Solutions vs. The Joint Commissioner (St) (Intelligence)
Held
The Court observed that the petitioner had availed ITC from non-existing taxpayers and was being proceeded against independently under Section 122. Therefore, the blocking of ITC was considered in accordance with law.
Facts
The petitioner's GST registration was cancelled after a field inspection. Subsequently, their Input Tax Credit (ITC) was blocked. The petitioner challenged the blocking of ITC, arguing it was illegal and contrary to the inspection findings.
Key Issues
Whether blocking of Input Tax Credit is justified when the assessee has availed credit from non-existing taxpayers and is being proceeded under relevant sections of the GST enactments.
Sections Cited
Rule 86A, Section 122
AI-generated summary — verify with the full judgment below
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED: 27.08.2026 CORAM: THE HONOURABLE MR.JUSTICE C.SARAVANAN and W.M.P.(MD) Nos.18372 &18373 of 2026 Sri Saravanaa Building Solutions, Rep.by its Sole Proprietor M.Thangamani. ...Petitioner Vs. 1.The Joint Commissioner (ST) (Intelligence), Commercial Taxes Complex, Dr.Thangaraj Salai, Madurai – 625 020. 2.The Assistant Commissioner (ST) (FAC), Inspection, Office of the Joint Commissioner (ST) (Intelligence), Commercial Taxes Complex, Madurai – 625 020. 3.The Assistant Commissioner (ST), Theni – I Assessement Circle, Commercial Taxes Building, Theni – 625 601. ...Respondents PRAYER: Writ Petition filed under Article 226 of the Constitution of India for issuance of Writ of Certiorarified Mandamus to call for the records relating to the 1/6 https://www.mhc.tn.gov.in/judis impugned proceeding in GSTIN. 33AQUPT6788J2ZN dated 12.05.2026 issued by the second respondent and the consequential Electronic Credit Ledger blocking entry bearing Reference No. BL3305260000392 dated 12.05.2026 issued by the second respondent and quash the same as illega
The judgment continues below.
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