9911796707
TMI Blog2022 (6) TMI 279X X X X Extracts X X X X X X X X Extracts X X X X ..... he CGST Rules), the petitioner has approached this Court seeking quashing of the order dated 17th of December, 2021 (Annexure P-18). 2. The petitioner, a Public Limited Company is engaged in manufacturing of copper wire rod and submersible winding wire and is registered under the Central Goods and Services Tax Act, 2017.As per the petitioner, respondents blocked Input Tax Credit amounting to Rs.1.9 Crore lying in Electronic Credit Ledger on 2nd of September, 2021.The petitioner filed representations objecting to such action of the respondents which remained undecided. The petitioner was constrained to approach this court by way of CWP No.23917 of 2021 which was decided vide the following order dated 6th of December, 2021 :- "We find that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /s Bhagwati Metals. He submits that Show Cause Notice for cancellation of registration was issued to M/s Bhagwati Metals on 5th February, 2021.The same was however dropped vide order dated 23rd February, 2021 and the suspension of registration of said M/s Bhagwati Metals was revoked by the said communication which is placed on record as Annexure P-20.His contention is thus that once the very basis of proceeding against the petitioner stands withdrawn by the respondents themselves and that too on 23rd of February, 2021, there was no reason to block the Input Tax Credit of the petitioner in September, 2021 and, thus, the impugned order dated 17th of December, 2021 deserves to be set aside. 5. He further submits that the intent and purport of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o part of a chain/racket involved in generation and passing on of fake ITC, without any inward supply at root level. The petitioner is one of the beneficiaries of ineligible ITC from said chain/racket. The petitioner alone has received ITC worth Rs.52.79 Crores from seven suppliers in said chain/ racket including ITC worth Rs.10.72 Crores received from M/s Bhagwati Metals, Delhi (GSTIN-07DMXPM2903J1ZJ). All seven suppliers are based out of jurisdiction of CGST Faridabad; therefore, this office has written to jurisdictional CGST authorities of these seven suppliers to verify their existence and genuineness of ITC passed by them to the petitioner. Report dated 29.11.2021 in this regard has been received from CGST-Delhi North in respect of M/s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ered person availing any credit of input tax is not in possession of a tax invoice or debit note or any other document prescribed under rule 36, may, for reasons to be recorded in writing, not allow debit of an amount equivalent to such credit in electronic credit ledger for discharge of any liability under section 49 or for claim of any refund of any unutilised amount. (2) The Commissioner, or the officer authorised by him under sub-rule (1) may, upon being satisfied that conditions for disallowing debit of electronic credit ledger as above, no longer exist, allow such debit. (3) Such restriction shall cease to have effect after the expiry of a period of one year from the date of imposing such restriction." 9. From bare perusal of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which no tax has been paid into the Government treasury. D. Recipient found non-existent or not conducting business at its registered place: It has been availed on the basis of documents prescribed under Rule 36 i.e. tax invoice, debit note etc issued by a registered person availing the credit (i.e. recipient) who has been found non-existent or not to be conducting any business from any place for which registration has been obtained. E. Availing of credit without documents: The registered person availing any credit of input tax is not in possession of a tax invoice or debit note or any other document prescribed under rule 36. 12. Rule 86A undoubtedly could be said to have conferred drastic powers upon the proper officers if they have ..... X X X X Extracts X X X X X X X X Extracts X X X X
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