9911796707
TMI Blog2021 (9) TMI 1187X X X X Extracts X X X X X X X X Extracts X X X X ..... tion upon the respondents to permit the petitioner to debit a sum of Rs. 47,30,457/- from its electronic credit ledger as shown in the ledger. The Learned Writ Court by order dated 30.07.2021 disposed of the Writ Petition, giving liberty to the petitioner to redress their grievances before competent authorities, as the Court cannot issue a direction as prayed for. Aggrieved by the same, the appellant is before us by way of this writ appeal. 3. We have heard Mr. Adithya Reddy, Learned counsel for the appellant and Mr. Mohana Murali, Learned Senior Standing Counsel, who accepts notice for the Respondents. 4. We agreed with the ultimate conclusion arrived at by the Learned Single Bench that the prayer sought for by the writ petitioner cannot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le 86-A was communicated to the appellant. 7. Learned Senior Standing Counsel appearing for the respondents submitted that the show cause notice was issued to the appellant by the second respondent on 17.12.2020 and the appellant had submitted his reply on 12.01.2021 and thereafter, he has made a representation on 22.06.2021. The show cause notice dated 17.12.2020 issued by the Assistant Commissioner of GST & Central Excise is proposing a demand for recovery of certain sums of money, on the alleged ground of nonpayment of IGST on ocean freight charges; wrong/ excess availment of Input Tax Credit etc. The reply given by the appellant-assessee would be considered by the authority and appropriate orders would be passed, pursuant to the same. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the debit of the credit, the assessee cannot expect a show cause notice to be issued. But nevertheless the power under Rule 86-A has been invoked and reasons have been recorded that needs to be communicated to the assessee so as to enable the assessee to put forth his objections and pray for release of the blocking of the electronic credit ledger. It is no doubt true that there is no such procedure provided for under Rule 86-A. Nevertheless, we are required to read the principles of natural justice into the said Rule. 10. In this regard, we rely on the decision of the Hon'ble Supreme Court in the case of GKN Driveshafts (India) Limited Vs. ITO reported in (2003) 259 ITR 19 (SC), wherein, the Hon'ble Supreme Court has laid down ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to debit of any amount equivalent to such credit in the electronic credit ledger. But, after doing so, the authority is bound to communicate the reasons, which weighed in his mind to pass such an order and not allow credit of any amount equivalent to such credit in the electronic credit ledger. On receipt of such reasons, the assessee is entitled to put forth his submission/objection requesting for lifting of such order and establishing a case that there has not been any fraudulent availment of credit or the assessee would not fall within anyone of the contingencies mentioned in clauses (a) to (d) of Rule 86-A(1) so as to make them ineligible for the credit. 12. In the light of the above, we are of the clear view that the authority viz., r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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