Ms Mahadev Steel Industries vs. Union Of INDIA And Anr
Held
The Court directed the respondent to consider the petitioner's case for unblocking of its Electronic Credit Ledger and pass an appropriate order in accordance with law within one week.
Facts
The petitioner's Input Tax Credit was blocked by an order dated 25.06.2024. The petitioner argued that the statutory period of one year for such restriction under Rule 86A(3) of the CGST Rules, 2017 had lapsed, and the credit should be unblocked.
Key Issues
Whether the Input Tax Credit blocked under Rule 86A(3) should be unblocked after the expiry of the one-year statutory period.
Sections Cited
Rule 86A(3)
AI-generated summary — verify with the full judgment below
CWP-29132-2025 -1- IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 150 CWP-29132-2025 Date of decision : 29.09.2025 M/s Mahadev Steel Industries
... Petitioner Versus Union of India and another
... Respondents CORAM : HON'BLE MR. JUSTICE ANUPINDER SINGH GREWAL HON'BLE MR. JUSTICE DEEPAK MANCHANDA Present:- Mr. Sholab Arora, Advocate for the petitioner. Mr. Sourabh Goel, Senior Standing Counsel and Ms. Samridhi Sain, Advocate for the respondents. *** Anupinder Singh Grewal, J. (Oral)
The petitioner is seeking a direction to the respondents to unblock the Input Tax Credit available in Electronic Credit Ledger of the petitioner to the tune of Rs.33,80,886/- as the statutory period of one year as stipulated under Rule 86A(3) of the CGST Rules, 2017 has lapsed.
Learned counsel for the petitioner submits that the petitioner-Firm had been blocked from Input Tax Credit by an order passed by the respondents on 25.06.2024 (Annexure P-1) in terms of Rule 86A(3) of the CGST Rules, 2017. He also submits that such restriction can operate only for a period of one year. He, therefore, submits that the respondents ought to have unblocked the account of the petitio
The judgment continues below.
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