M/S Bizzare Ispat PVT. LTD., Chhatisgarh vs. The Commissioner Of CT And GST, Cuttack
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Cause title — parties, addresses and appearances
ORDER 22.09.2023 Order No.
This matter is taken up through hybrid arrangement.
Heard Ms. R.Kurmy, learned counsel appearing for the petitioner and Mr. S.Mishra, learned Standing Counsel appearing for the CT & GST Department.
The Petitioner has filed this writ petition seeking direction to the Opposite Party No.2 to unblock the Electronic Credit Ledger of the petitioner and to withdraw/recall all proceedings thereunder.
Learned counsel for the petitioner contends that the Petitioner is a private limited company duly registered under the OGST Act/CGST Act vide GSTIN No. 2
21AAKCB5795L1Z8 which receives and supplies goods, file GSTR-1, GSTR-3B, GSTR-9C returns and pays taxes from the registered premises in the state of Odisha and the same are accepted by the opposite parties. But, the opposite party No.2 in exercise of powers under Rule 86A of the OGST/CGST Rules, 2017 without issuing show cause notice and extending any opportunity of being heard and has blocked the Input Tax Credit of Rs.5,96,250/- ( CGST Rs. 2,98,125/- + SGST Rs.2,98,125/-) available in their Electronic Credit Ledger with effect from 30th June, 2023 based on the ground that the recipient is found to be non-functioning at the place of business. It is further contended that neither any order with respect to blocking the Electronic Credit Ledger has been served nor any show cause notice or a notice of hearing therefor has ever been served upon the petitioner.
Per contra, Mr. S.Mishra, learned Standing Counsel appearing for the CT & GST Department contends that as the instant taxpayer found Non-functioning at the declared place of business ( due to Rule 21(a)-person does not conduct any business from declared place of business vide- Reference No.ZA210823019757H) but passed on Input Tax Credit (ITC). Hence, Input Tax Credit has been blocked. On scrutiny of the returns for the tax period from April 2023 to 3
August 2023 it is prima facie found that that the Tax payer is not functioning in the declared place of business but has passed on Input Tax Credit.
It is further contended that since the portal of the petitioner has been blocked on 30.062023 and proceeding under Section 74 of the Odisha Goods and Services Tax Act has been initiated thereafter, if for some reasons or other the matter is not resolved, in that case after expiry of one year, i.e. 30.06.2024 the portal of the petitioner will automatically be revived.
He further contends that non-functioning of the Taxpayer in the declared place of business is coming under the provision of Sub Clause-1(a)(i) of Rule 86A of the Odisha Goods and Services Tax Rules, 2017 about which being queried to the petitioner, he remained silent. The said provision is enumerated herein below that Rule 86A-Conditions of use of amount available in Electronic Credit Ledger:- (1) The Commissioner or an officer authorized by him in this behalf, not below the rank of an Assistant Commissioner, having reasons to believe that credit of input tax available in the electronic credit ledger has been fraudulently availed or is ineligible in as much as- 4
(a) 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- (i) Issued 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
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In view of the above, this Court is not inclined to entertain this writ petition and the same is dismissed.
(Dr.S.K.Panigrahi) Judge
(G.Satapathy) Judge
Lingaraj
Reproduced from the public record of the Orissa High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.