Credit disallowance by commissioner
Case Title | Torane Ispat Udhyog Pvt. Ltd. Vs Union of India and Ors. |
Court | Bombay High Court |
Honorable Judges | Justice K. R Sri Ram and Justice Gauri Godse |
Citation | 2022 (8) GSTPanacea 166 HC Bombay W.P.A. 8566 of 2022 |
Judgement Date | 22-August-2022 |
Council for Petitioner | Prasannan S Nambudiri Virender U. Pandey |
Council for UOI | Siddhartha Chandrashekhar Uma Palsuledesai |
Council for State |
The Bombay High Court bench of Justice K.R Sriram and Gauri Godse has held that Authority must be in always position of copy of order to reason to believe of disallowances while disallowing any credit in ECL of assesee.
FACTS OF THE CASE
The petitioner is being assailed by the order of respondent for disallowing the credit of ITC accruing in his Electronic Cash Ledger under rule 86 A of CGST Rules read with Section 49 of CGST Act,2017.
In a brief as per Rule 86A the commissioner not below the rank of Assit. Commissioner or person authorised by him shall disallow the credit of ITC of assessee if he has reason to believe that credit is being availed by fraudently.
But neither the petitioner has been made available copy of the reason to believe for disallowing credit nor submitted any reply by respondent
Credit disallowance by commissioner
COURT HELD
Considering the facts as recorded, without any further verification the respondent is directed to make available the copy of Reason to Believe by 26th Aug 2022 and if petitioner wish to amend the petitioner he may tender the draft on the next date 30th Aug 2022
Credit disallowance by commissioner
ANALYSIS OF THE JUDGEMENT
Commissioner disallowing the ITC to availment by assessee must furnish the copy of order for reason to believe in the interest of revenue.
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Torane Ispat Udhyog
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Bombay High Court