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TMI Blog2022 (4) TMI 417X X X X Extracts X X X X X X X X Extracts X X X X ..... : C.S.C.,Amit Mahajan,B.P.Singh Kachawaha,C.S.C., A.S.G.I.,C.S.C.,Gaurav Mahajan,Krishna Agarawal ORDER 1. Heard Sri Praveen Kumar, Sri Aditya Pandey, Sri Pranjal Shukla, learned counsels for the petitioners; Sri B.P. Singh Kachhawah, learned standing counsel Sri Nimai Das, learned Additional Chief Standing Counsel for the respondents. 2. All the aforequoted writ petitions have been filed aggrieved with blocking of input tax credit by the concerned authority under Rule 86 A of the C.G.S.T. /U.P. G.S.T. Rules, 2017. Rule 86 A(2) of the C.G. S.T. Rules, 2017, which provides as under :- 86 A(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. The guidelines for disallowing debit of electronic credit ledger under Rule 86 A(2) of the C.G. S.T. /U.P. G. S.T. Rules, 2017, has been issued by the Commissioner of Commercial Tax U.P. as under :- Office of the Commissioner, Commercial Tax, Uttar Pradesh (GST Section) Letter No.GST/2021-22/ 30 / Commercial Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... overnment; or c) the registered person availing the credit of input tax has been found non-existent or not to be conducting any business from any place for which registration has been obtained; or d) 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, may, for reason 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 (l) 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. 3.1.2 Perusal of the rule makes it clear that the Commissioner, or an officer authorised by him, not below the rank of Assistant Commissioner, must have reasons to believe that credit of input tax available in the electronic cre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es an objective determination based on intelligent care and evaluation as distinguished from a purely subjective consideration of suspicion. The reasons are to be on the basis of material evidence available or gathered in relation to fraudulent availment of input tax credit or ineligible input tax credit availed as per the conditions/grounds under sub-rule (1) of rule 86A. 3.2 Proper authority for the purpose of Rule 86A 3.2.1 The Commissioner is the proper officer for the purpose of exercising powers for disallowing the debit of amount from electronic credit ledger of a registered person under rule 86A. However, Commissioner can also authorize any officer subordinate to him, not below the rank of Assistant Commissioner, to be the proper officer for exercising such power under rule 86A. In exercise of powers conferred by Rule 86A; the officers authorised by the Commissioner on the basis of monetary limits are as mentioned below: Total amount of ineligible or fraudulently availed input tax credit Officer to disallow debit of amount from electronic credit ledger under rule 86A Not exceedi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e been fraudulently availed or is ineligible, as per the conditions/ grounds mentioned in sub-rule (l) of rule 86A. 3.3.3 The action by the commissioner or the authorized officer, as the case may be, to disallow debit from electronic credit ledger of a registered person, is informed on the portal to the concerned registered person, along with the details of the officer who has disallowed such debit. 3.4 Allowing debit of disallowed/ restricted credit under sub-rule (2) of Rule 86A: The Commissioner or the authorized officer, as the case may be, either on his own or based on the submissions made by the taxpayer with material evidence thereof, may examine the matter afresh and on being satisfied that the input tax credit, initially considered to be fraudulently availed or ineligible as per conditions of sub-rule (1) of rule 86A, is no more ineligible or wrongly availed, either partially or fully, may allow the use of the credit' so disallowed/restricted, up to the extent of eligibility, as per powers granted under sub-rule (2) of rule 86A . Reasons for allowing the debit of electronic credit ledger, which had been earlier disallowed, shall be d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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