K.J International vs. State Of Punjab And Another
Held
The High Court set aside the orders blocking the ITC and directed the authorities to unblock the petitioner's account forthwith. This was subject to retaining 10% of the assessed penalty amount, fulfilling the pre-deposit condition.
Facts
The petitioner's Input Tax Credit (ITC) was blocked by the respondent authorities. The petitioner sought to quash these blocking orders and direct the unblocking of the ITC.
Key Issues
Whether the blocking of Input Tax Credit was justified without proper investigation and whether the petitioner's account should remain blocked pending adjudication.
Sections Cited
Rule 86A
AI-generated summary — verify with the full judgment below
2023:PHHC:129806-DB 118 HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH CWP-22514-2023 Date of decision:06.10.2023 K.J.International through its partner Pawan Kumar ....Petitioner V/s. State of Punjab and another ....Respondents CORAM: HON'BLE MS. JUSTICE RITU BAHRI HON'BLE MRS. JUSTICE MANISHA BATRA Present: Mr. Mukul Singla, Advocate for the petitioner. **** Ritu Bahri, J. (Oral).
The petitioner is seeking quashing of orders dated 10.08.2023 (Annexure P-3) and 25.08.2023 (Annexure P-4) whereby respondent No. 2 has blocked Input Tax Credit amounting to Rs.55,89,654/- and Rs.56,18,263/- respectively lying in the Electronic Credit Ledger of the petitioner or directing respondent No. 2 to unblock Input Tax Credit amounting to Rs.1,12,07,917/-.
Learned counsel for the petitioner states that vide orders dated 10.08.2023 (Annexure P-3) and 25.08.2023 (Annexure P-4), respondent No. 2 has blocked the Input Tax Credit of the petitioner.
Learned counsel for the State, Ms. Anu Pal, Senior Deputy Advocate General, Punjab informs that after passing orders dated 10.08.2023 (Annexure P-3) and 25.08.2023 (Annexure P-4), show cause notices both dated 25.09.2023 (Annexures P-5 and P-6) hav
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