ITC availment right not 'indefeasible'- Gujarat HC upheld DGGSTI's action under Rule 86A

Last updated: 22 January 2021

Court :
Gujarat High Court

Brief :
The Hon'ble Gujarat High Court in S.S. Industries v. Union of India [R/Special Civil Application No. 8841 of 2020 with R/Special Civil Application No. 8163 of 2020 decided on December 24, 2020] upheld the Directorate General of Goods & Services Tax Intelligence's ("Respondent No. 4" / "DGGSTI") action of blocking Input Tax Credit ("ITC") in the electronic credit ledger of the assessee by invoking Rule 86A of the Central Goods and Service Tax Rules, 2017 ("CGST Rules") and while refusing to interfere when the investigation is in progress, the Court held that it would be too much for this court at this stage to stall a legitimate investigation into the allegations of fraudulent transactions and permit the writ applicants to avail the ITC of a huge amount in exercise of its writ jurisdiction.

Citation :
R/Special Civil Application No. 8841 of 2020 with R/Special Civil Application No. 8163 of 2020 decided on December 24, 2020