2021 (12) TMI 118 - HC - GST

Attachment of petitioner's credit - self-limiting in terms of under Rule 86A of the Central Goods and Services Tax Rules, 2017 - HELD THAT - Considering the fact that the petitioner's representations dated 09.06.2021 and 04.10.2021 have not evoked any response from the respondents, this Writ Petition is disposed at the time of admission by directing the respondents to consider the representations of the petitioner and pass appropriate orders within a period of forty five days from the date of receipt of a copy of this order in accordance with law and on merits. Petition disposed off.

Summary

Issues:
- Attachment of petitioner's credit by respondents
- Failure of respondents to respond to petitioner's representations
- Interpretation of Rule 86A of the Central Goods and Services Tax Rules, 2017
- Applicability of sub-rule (3) of Rule 86A
- Reference to decisions of Uttarkhand High Court and Gujarat High Court
- Direction to respondents to consider petitioner's representations and pass appropriate orders

Analysis:
The petitioner's credit was attached by the respondents on a specific date. The petitioner sent representations on two occasions, but the respondents did not respond to them. The petitioner argued that the attachment was self-limiting under Rule 86A of the Central Goods and Services Tax Rules, 2017. The petitioner highlighted that sub-rule (3) of Rule 86A states that such restrictions cease to have effect after one year from the date of imposition. Additionally, the petitioner referred to decisions from the Uttarkhand High Court and Gujarat High Court, along with a decision from the same Court in a different case.

During the proceedings, the learned Junior Panel Counsel for the respondents undertook to obtain instructions on the matter. After hearing both parties, the Court noted the lack of response from the respondents to the petitioner's representations. Consequently, the Court disposed of the Writ Petition at the time of admission, directing the respondents to consider the petitioner's representations and issue appropriate orders within forty-five days from the receipt of the Court's order. This direction was given in accordance with the law and on merits, with no costs imposed on either party.