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2021 (1) TMI 794 - HC - GSTRecovery of dues - blocking the input tax credit available in the credit ledger account of the writ applicant for recovering dues - invocation of Rule 86A of the Central Goods & Service Tax Rules, 2017 - HELD THAT:- Rule 86A can be invoked only if the conditions stipulated therein are fulfilled. In other words, it is only if the Commissioner or an Officer authorized by him has reasons to believe that the credit of input tax available in the electronic credit ledger has been fraudulently availed or is ineligible for the reasons stated in Rule 86A(1)(a) to (d) that the authority would get the jurisdiction to exercise the power under Rule 86A of the Rules - We fail to understand how Rule 86A could have been invoked in the present matter. The issue, as such, stands squarely covered by three decisions of this High Court, i.e, CHOKSI VERSUS STATE OF GUJARAT [2012 (3) TMI 392 - GUJARAT HIGH COURT], DIFFERENT SOLUTION MARKETING PRIVATE LTD AND 2 VERSUS ASSISTANT COMMISSIONER OF COMMERCIAL TAXES AND 2 [2016 (7) TMI 121 - GUJARAT HIGH COURT] as well as PARAS SHANTILAL SAVLA VERSUS STATE OF GUJARAT [2019 (7) TMI 350 - GUJARAT HIGH COURT] where it was held that Unlike section 179 of the Income-tax Act, 1961, there is no provision in the Sales Tax Act fastening the liability of the company to pay its sales tax dues on its directors. The respondent No.2 is directed to unblock the input tax credit available in the credit ledger account of the writ applicant at the earliest - application allowed.
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