1. Home

SGST High Court Cases

GST – Interpretation of Rule 86-A of the CGST Rules, 2017 - Blocking of ITC in Electronic Credit Ledger – Revenue contention that the blocking could not be restricted only to the amount available in the Electronic Credit Ledger as on the date of the order, but blocking would relate to the entire ITC fraudulently availed - Whether the Revenue is entitled to invoke the provisions of Rule 86-A and block the ITC in the Electronic Credit Ledger when there was no ITC available in the ledger on the date of the order – HELD - on a plain reading of the Rule 86-A, if on the date of issuing the impugned order or on the date of making an order under Rule 86-A blocking the ITC in the Electronic Credit Ledger, no ITC was found to be available there, then, there would be no question of exercising the powers under Rule 86-A or making any order under Rule 86-A to block such non-available ITC in the Electronic Credit Ledger - In the absence of ambiguity, it is ordinarily not open for the Court to adopt a construction or an interpretation that allegedly aligns with the intention, though not with the expressed or plain words employed to express such intention - The argument of the respondent that the rule should be interpreted to enable the blocking of any future credit that might be available in the Electronic Credit Ledger goes against the plain language of the Rule - If the intention of the legislature was to enable the blocking of any future credit that might be available in the Electronic Credit Ledger, then the Rule would have been differently worded to expressly enable or permit such a consequence - Rule 86-A allows for the blocking of the Electronic Credit Ledger only to the extent of the credit available in it at the time of exercising the powers under Rule 86-A. The Rule 86-A does not permit is the blocking of any future credits the assessee might obtain, thereby introducing the concept of “negative blocking” - The Respondent is not entitled to invoke the provisions of Rule 86-A and block the ITC in the petitioner's Electronic Credit Ledger when there was no ITC available in the ledger on the date of the order - The impugned order is quashed and set aside and the writ petition is allowed
Download File
show more Judgements  

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Tax Vista

Your Weekly Tax Recap

By Kasi Viswanathan V

Weekly Summary

VIL Video

GSTAT Portal Opens...
By CA Vivek Jalan

Create Account

Security-Code
New Code?

Log In

New User ? Forgot Password ?

Forgot Password

Security-Code
New Code?
Please Note: This facility is only for Subscribing Members.

Email this page

Feedback this page

Schedule a Demo

Schedule a demo to know the features and advantages of VILGST portal. Get to know the tips to find the desired results in faster way.

Caselaw Request Form (CRF)

Didn’t find what you are searching for? No worries, please give us the following details and VIL will email you the desired Caselaws at the earliest:

Security-Code
New Code?