GST Update

???? Desk of CA. Praveen Sharma – 1096  Series (CAPS) ????

Karnataka High Court  IN THE CASE OF M/s Safan Fasteners v. Assistant Commissioner & Others

Company/Taxpayer: M/s Safan Fasteners, a proprietary concern.

Dispute: ITC of approximately ?3.13 crore was blocked in the Electronic Credit Ledger under Rule 86A.

Procedural lapse: The blocking was undertaken without issuing prior notice or providing a pre-decisional hearing.

Court’s view: Blocking ITC carries serious civil consequences; therefore, the principles of natural justice must be followed.

Independent satisfaction: The jurisdictional officer could not act mechanically merely on information received from another authority.

Decision: The Court quashed the impugned action and directed the authorities to unblock the ITC, while permitting lawful fresh proceedings.

LINK:CA. Praveen Sharma on Linkedin

Regards
CAPS