M/S Star Metal Industries vs. State Of U.P. And 2 Others
Held
The Court directed the respondent to consider the petitioner's reply to the show cause notice expeditiously and pass appropriate orders within 45 days. The final order will be subject to law and the impugned order will abide by its outcome.
Facts
The petitioner's input tax credit of Rs. 39,75,082/- was blocked by an order passed under Rule 86A of the GST Rules. The petitioner contended the order was passed mechanically, while the respondent stated it was a precaution and a show cause notice was issued.
Key Issues
Whether the input tax credit was blocked mechanically without proper basis. Whether the petitioner's reply to the show cause notice was considered appropriately.
Sections Cited
Rule 86A
AI-generated summary — verify with the full judgment below
Neutral Citation No. - 2023:AHC:179186-DB Chief Justice's Court Case :- WRIT TAX No. - 1078 of 2023 Petitioner :- M/S Star Metal Industries Respondent :- State Of U.P. And 2 Others Counsel for Petitioner :- Nishant Mishra,Tanmay Sadh Counsel for Respondent :- C.S.C. Hon'ble Pritinker Diwaker,Chief Justice Hon'ble Ashutosh Srivastava,J.
Sri Nishant Mishra, learned counsel for the petitioner, learned Standing Counsel for the State Respondents and Sri Ankur Agarwal, learned counsel for Respondent No.3. 2. The challenge in this writ petition is to the order dated 23.02.2023 passed by the Respondent No.3, exercising power under Rule 86A of the State/Central Goods and Services Tax Rules, 2017 whereunder the input tax credit to the extent of Rs.39,75,082/- standing in the electronic credit ledger of the petitioner has been blocked. It is contended by Sri Nishant Mishra, learned counsel for the petitioner that the impugned order has been passed mechanically without any basis.
In reply, however, Sri Ankur Agarwal submits that the order has been passed merely as a precaution and show cause notice has been issued, to which reply has already been filed by the petitioner. He submits that
The judgment continues below.
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