Psn Automotive Marketing Private Limited vs. The Assistant Commissioner Of Central Taxes
Held
The Court held that the restriction on the Electronic Credit Ledger, as per Rule 86A(3) of the CGST Rules, ceases to have effect after one year from the date of imposition. Since the blocking had continued beyond one year, it was set aside.
Facts
The petitioner's Input Tax Credit (ITC) of Rs. 7,08,400/- in their Electronic Credit Ledger was blocked. The blocking had been in effect since at least May 6, 2020, and was still active as of September 3, 2021.
Key Issues
Whether the blocking of the Electronic Credit Ledger beyond the one-year period stipulated in Rule 86A(3) of the CGST Rules is lawful.
Sections Cited
Rule 86A(3)
AI-generated summary — verify with the full judgment below
1 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 29TH DAY OF SEPTEMBER 2021 BEFORE THE HON'BLE MR.JUSTICE S. SUNIL DUTT YADAV WRIT PETITION No.16727/2021 (T-RES) Between: PSN Automotive Marketing Private Limited (A Company Registered under the Companies Act) 34/652 C1, Civil Line Road Padivattom, Edapally P.O., Cochin - 682 024, Represented by Joint Managing Director Mr. Kaushik Anantha Narayan.
… Petitioner (By Sri K.J. Kamath, Advocate) And: The Assistant Commissioner of Central Taxes Mangaluru South Division, Padil Range, 5th Floor, Punja Building Annex, Ballalbhag, Mangaluru - 575 003. … Respondent (By Sri Amit Deshpande, Advocate) This Writ Petition is filed under Article 226 of the Constitution of India, praying to direct the respondent to unblock the Input Tax Credit to the tune of Rs.7,08,400/- as per the Petitioner's Electronic Credit Ledger at Annexure-A by issuance of Writ of Mandamus or any other writ in the nature of a Writ of Mandamus by declaring that the blocking of Credit Ledger is not in accordance with the law and etc. This Writ Petition coming on for orders this day, the Court made the following:
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The judgment continues below.
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