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March 2025

Goods And Services Tax

By Puloma Dalal | Jayesh Gogri | Mandar Telang, Chartered Accountants
Reading Time 20 mins

HIGH COURT

98. M/S. Atulya Minerals Vs. Commissioner Of State & Others

[2025-Tiol-271-Hc-Orissa-Gst]

Dated: 3rd February, 2025

Rule 86A of CGST Rules 2017- Revenue’s right to block the credit expires on completion of one year when appropriate recovery proceeding is initiated.

FACTS

Pursuant to a judgment dated 10th September, 2024, revenue made a fresh order dated 27th September, 2024 invoking Rule 86A of CGST Rules, 2017. Petitioner challenged the said fresh order which justified appropriation of future input tax credit (ITC) when it becomes available to the petitioner and thus do negative blocking of ITC. The fact of the matter is that Rule 86A of Orissa GST Rules, 2017 allows blocking of electronic ledger for a period of one year. Vide the order passed by Hon. High Court, petitioner was directed to satisfy the authority during the blocking period of maximum one year to show that there did not exist a reason to continue to block the credit. According to the petitioner, the fresh order of the revenue was without any basis. Reliance was placed by petitioner on the view taken by division B

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