M/S Habib Trading Company vs. State Of U.P. And 3 Others
Held
The Court held that the writ petition was dismissed without expressing any opinion on the merits of the petitioner's case. The primary finding was that the petitioner should pursue the available statutory remedy. The Court acknowledged the petitioner's stated intention to file objections before the competent Authority under Rule 86A(2) of the CGST/UPGST Rules, 2017. The reasoning was based on allowing the petitioner to avail the prescribed procedural mechanism for redressal. The ratio decidendi is that statutory remedies must be exhausted before approaching the High Court under its writ jurisdiction, especially when the petitioner intends to avail such remedies. The operative direction was to allow the petitioner to file objections before the competent Authority along with a certified copy of the order within two weeks from the date of the order, and for the competent Authority to dispose of these objections in accordance with law within the subsequent two weeks.
Facts
The petitioner, M/s Habib Trading Company, filed a writ petition before the Allahabad High Court challenging the blocking of its Input Tax Credit (ITC) under Rule 86A of the CGST/UPGST Rules, 2017. The Authority concerned had recorded reasons for blocking the ITC, and a copy of this ordersheet dated 6.5.2022 was communicated to the petitioner. Additionally, a letter dated 19.7.2022 from the Joint Commissioner (Executive), State Tax, Meerut Zone-II, Meerut was also sent to the petitioner. The petitioner's counsel informed the Court that the petitioner intended to file objections before the Authority under Rule 86A(2) of the Rules.
Key Issues
1. Whether the petitioner has a right to file objections against the blocking of ITC under Rule 86A(2) of the CGST/UPGST Rules, 2017, before the competent authority? (Question of law) Petitioner's contention: The petitioner, through its counsel, stated its intention to file objections before the concerned Authority under Rule 86A(2) of the Rules. This implies an assertion of their right to do so. Revenue's contention: The judgment does not record any specific argument from the respondent State of U.P. and 3 Others regarding the petitioner's right to file objections. However, the Court's final order implicitly acknowledges this right by directing the Authority to consider such objections.
Sections Cited
Rule 86A, Rule 86A(2)
AI-generated summary — verify with the full judgment below
Court No. - 3 Case :- WRIT TAX No. - 1021 of 2022 Petitioner :- M/S Habib Trading Company Respondent :- State Of U.P. And 3 Others Counsel for Petitioner :- Pranjal Shukla Counsel for Respondent :- C.S.C.
Hon'ble Surya Prakash Kesarwani,J.
Hon'ble Jayant Banerji,J.
Heard Shri Pranjal Shukla, learned counsel for the petitioner and Shri Apoorva Hajela, learned Standing Counsel for the State-respondents.
Aggrieved with the blocking of the ITC under Rule 86A of the CGST/UPGST Rules, 2017, the petitioner has filed the present writ petition. A copy of the ordersheet dated 6.5.2022 containing reasons recorded by the Authority concerned for blocking of the ITC under Rule 86A of the Rules has already been communicated to the petitioner. That apart a copy of the ordersheet has been produced alongwith the instructions today and has also been given by the learned Standing Counsel for the learned counsel for the petitioner in the Court alongwith a copy of the letter dated 19.7.2022 sent by the Joint Commissioner (Executive) State Tax, Meerut Zone-II, Meerut to the petitioner.
Learned counsel for the petitioner states that the petitioner shall file his objections before the Authority concerned u
The judgment continues below.
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Reproduced from the public record of the Allahabad High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.