2025-VIL-1163-ALH
  1. Home
  2. 2025-VIL-1163-ALH

SGST High Court Cases

GST - Blocking of Input Tax Credit, Reasons to believe, Recording of reasons in writing - Blocking of ITC basis alert notice received from the DGGI, Raipur Zonal Unit stating one of the suppliers of the petitioner is found to be non-operational and had passed on fraudulent ITC without any supply of goods - Whether the respondent had fulfilled the mandatory requirement under Rule 86A of the UPGST Rules, 2017 to record the 'reasons to believe' in writing before blocking the ITC of the petitioner - HELD - The respondent has not fulfilled the mandatory requirement of recording the 'reasons to believe' in writing as required under Rule 86A(1) of the UPGST Rules. The mere statement that the "supplier found non-functioning" did not reflect any application of mind or specific reasons for the belief that the petitioner's ITC was fraudulent. The communication from the DGGI, Raipur Zonal Unit also only reflected a generic conclusion about the supplier's transactions, and did not establish that the transactions between the petitioner and the supplier were bogus - The requirement to record the 'reasons to believe' in writing is a non-negotiable and mandatory condition and mere doubt or suspicion alone is not sufficient to block the ITC, as that would disrupt the entire value addition chain and tax payments. Therefore, the action taken by the respondent to block the petitioner's ITC is set aside and the blocked ITC is directed to be unblocked forthwith - The writ petition is allowed
Download File

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Tax Vista

Your Weekly Tax Recap

By Kasi Viswanathan V

Weekly Summary

VIL Video

GSTR-9 & GSTR-9C of FY24-25
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?