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2023 (10) TMI 861 - BOMBAY HIGH COURTBlocking of petitioner’s input tax credit (ITC) - blocking on the ground that the petitioner had availed such input tax credit fraudulently during the period from 2021-22 and 2022-23 and the same was apparent from the records - HELD THAT:- On a cumulative reading of the statutory scheme as brought about by these provisions and rules, such provisions as conferring powers on the State Officers under the CGST Act are required to be read harmoniously. It cannot be conceived that the intention in framing Rule 86-A of the CGST Rules would be to denude the powers which are conferred on the State Tax Officer to exercise powers under Rule 86A as permitted by Section 5 of the MGST Act read with a clear authorization under Section 6 of the CGST Act. The State tax officer have the jurisdiction to pass the impugned order invoking Rule 86-A of the CGST Rules. The order as passed by the State Tax Officer is neither in consonance with the observations as made by the very officer in the impugned order providing for an opportunity to the petitioner to make out a case against such blocking of input tax credit, as also the same would be contrary to the provisions of Rule 86-A (2) of the CGST / MGST Rules, which itself provides that the Commissioner or the Officer authorized by him under sub-rule (1) may, upon being satisfied that conditions for disallowing debit of electronic credit ledger, no longer exist, allow such debit - Sub-rule (2) of Rule 86-A therefore certainly provides for a window or an opportunity available to the assessee to make out a case against the action of the department to disallow the benefit of credit to the assessee. The order dated 10 April, 2023 passed by the State Tax officer, being roznama order, rejecting the petitioner’s objection is quashed and set aside - Petition disposed off.
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