Department should at least provide reasons for blocking the input tax credit
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Case Details: |
M/s Milli Enterprises vs. Union of India |
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Appeal No.: |
R/Special Leave Application No. 6575 of 2021 |
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Order Pronounced by: |
Gujarat High Court |
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Date of order: |
16-06-2021 |
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In favour of assessee: |
Assessee |
Brief Facts:
- Learned Advocate for the petitioner submits that the petitioner has not been served with any notice or the reasons for blocking the credit amounting to Rs. 21,88,860/- by the Respondent Authority.
- Even, presumably, if the powers are exercised under Rule 86(A) of the GST Rules, 2017, then also, the concerned authority is required to give reasons for blocking the credits in the credit ledger of the Petitioner.
High Court verdict:
High Court issued notices to the Government observing that the department should at least provide the reason for blocking the input tax credit and it should be specified in a notice under rule 86(A).
