BharatTaxGST

M/S Aaiz Steel vs. The Assistant Commissioner Of

Original PDF →
WP/16117/2023HC KarnatakaGSTCNR KAHC01037963202327 February 2024Bench: S.R.KRISHNA KUMAR4 pages
For Petitioner: SRI. SHREEHARI KUTSA, ADVOCATEFor Respondent: SRI HEMA KUMAR K, AGA

No AI summary yet for this judgment.

Cause title — parties, addresses and appearances
- 1 - NC: 2024:KHC:7988 WP No. 16117 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 27TH DAY OF FEBRUARY, 2024 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION No. 16117 OF 2023 (T-RES) BETWEEN: M/S AAIZ STEEL A PROPRIETORSHIP CONCERN NO.9, SHOP NO.4, GROUND FLOOR P & T LAYOUT, 2ND STAGE, 2ND PHASE RAJIV NAGAR, MYSORE - 570 019. REP. BY ITS PROPRIETOR MOHAMMED VASIF SON OF SRI MUMTAZ PASHA AGED ABOUT 30 YEARS. …PETITIONER (BY SRI. SHREEHARI KUTSA, ADVOCATE) AND: 1. THE ASSISTANT COMMISSIONER OF COMMERCIAL TAXES, LGSTO-205 MYSURU. SHESHADRI IYER BUILDING, DEEWANS ROAD, MYSURU - 570 004. THE PROPER OFFICER UNDER THE CGST/KGST ACT, 2017. 2. JOINT COMMISSIONER OF CENTRAL TAX (APPEALS), MYSURU DIVISION, MYSURU GST BHAVAN, VINAYAMARGA SIDDARTHA NAGAR MYSURU - 570 011. THE APPELLATE AUTHORITY UNDER THE CGST/KGST ACT, 2017. …RESPONDENTS (BY SRI HEMA KUMAR K, AGA) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSITITUTION OF INDIA PRAYING TO QUASHING THE ORDER BEARING NO. 23/2022-23 DATED 20/08/2022 ISSUED BY THE R1 IN Digitally signed by LAKSHMINARAYANA MURTHY RAJASHRI Location: HIGH COURT OF KARNATAKA - 2 - NC: 2024:KHC:7988 WP No. 16117 of 2023 EXERCISE OF AUTHORITY VESTED IN RULE 86A OF CGST RULES, 2017 AND ENCLOSED AS ANNEXURE-B AND QUASHING THE ORDER UNDER SECTION 107(11) OF THE SGST/GCST ACT, 2017 BEARING APPEAL NO. GST/AT/101/2022-23 DATED 30/05/2023 ISSUED BY THE R2 AND ENCLOSED AS ANNEXURE-L. THIS PETITION COMING ON FOR ORDERS THIS DAY, THE COURT MADE THE FOLLOWING:

ORDER

In this petition, petitioner seeks quashing of impugned order dated 20.08.2022 passed by first respondent under Rule 86(A) of CGST Rules, 2017, blocking of Input Tax Credit of the petitioner which was confirmed by the first Appellate Authority, vide Annexure-L dated 30.05.2023. 2. Heard learned counsel for the petitioner and learned counsel for respondents and perused the material on record.

3.

Learned counsel for the petitioner submits that apart from the various other contentions urged to the petition, in light of the undisputed fact that the impugned order dated 20.08.2022 can remain in force only for a period of one year, as stipulated in Sub- Rule 3 of Rule 86(A) of the CGST Rules, blocking of the Input Tax Credit of the petitioner would necessarily have to be unblocked after expiry of the prescribed period of one year which came to an end on 20.08.2023. It is therefore submitted that while the NC: 2024:KHC:7988 impugned order at Annexure- B deserves to be set aside, the impugned order challenging Annexure – L, does not survive for In S.P.Metal case supra, this Court has held as under: "In view of the aforesaid facts and circumstances and the submission made by both sides and in the light of the undisputed fact that one year as stipulated in Sub-rule (3) of Rule 86A CGST Rules, 2017 came to an end on 11.05.2023 in so far as petitioner was concerned, question of respondents continuing to block ITC of the petitioner is clearly illegal and arbitrary and the same deserved to be unblocked by issuing necessary directions in this regard." NC: 2024:KHC:7988

6.

As rightly contended by the learned counsel for the petitioner, upon expiry of a period of one year as contemplated under Sub-Rule (3) of Rule 86(A) of the CGST Rules, which came to an end on 20.08.2023, impugned order at Annexure-B deserves to be quashed and respondents are directed to unblock the Input Tax Credit of the petitioner, within stipulated time period.

7.

In the result, the following: ORDER

1.

The petition is hereby allowed.

2.

Respondent No.1 is directed to unblock the Input Tax Credit (ITC) of the petitioner as directed in the impugned order at Annexure–B, within the period of one week from today. JUDGE

GH List No.: 1 Sl No.: 9

Reproduced from the public record of the Karnataka High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.