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TMI Blog2022 (5) TMI 129X X X X Extracts X X X X X X X X Extracts X X X X ..... ledger is to be utilised and provides that the balance in electronic cash ledger after payment of tax, interest, penalty, fee etc. may be refunded in accordance with the provisions of Section 54 of the GST Act. Though before the learned CMM and in the reply, the case of the respondent is that the ITCs being fraudulent the same cannot be availed of, during the course of arguments, learned counsel for the respondent does not dispute that the payment of tax could be made from the electronic ledger under Section 49 (4) of the GST Act however, contends that since the learned Trial Court directed the petitioner to deposit the amount of ₹2.70 crores, he could not have availed the amount of ₹1.60 crores by debiting the ITCs - the pet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1 (for stay) 1. By this petition, petitioner challenges the order dated 9th July, 2021 passed by the learned CMM, Patiala House Courts whereby the bail granted to the petitioner vide order dated 23rd December, 2019 was cancelled by the learned CMM. Though in the prayer clause the petitioner has also sought quashing of the proceedings initiated by the respondent under Section 67/70 of Central Goods and Services Tax Act, 2017 (in short CGST ) as also the release of the records seized from the various premises of the petitioner, however, during the course of arguments the petitioner pressed prayers (a), (b) and (c) in the present petition, that is, setting aside of order dated 9th July, 2021 cancelling the bail of the petitioner and rest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... crores through cash ledger and ₹1.60 crores by way of debiting/reversals through electronic ITC ledger. 5. According to the respondent as also the impugned order since the ITC availed were through fraudulent means and thus the entire ITC claimed by the companies were under cloud, therefore, the petitioner could not have furnished ₹1.60 crores by reversal of the ITC as a condition of bail. 6. Learned Trial Court further held that the petitioner never took prior permission of the Court to deposit the amount of ₹1.60 crores through reversal of credit from electronic ledger and merely placed the compliance by way of challans before the Court on 21st January, 2020 whereafter the respondent filed an application dated 24th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mounts.- (1) ... (2) ... (4) The amount available in the electronic credit ledger may be used for making any payment towards output tax under this Act or under the Integrated Goods and Services Tax Act in such manner and subject to such conditions and within such time as may be prescribed. (5) The amount of input tax credit available in the electronic credit ledger of the registered person on account of- (a) integrated tax shall first be utilised towards payment of integrated tax and the amount remaining, if any, may be utilised towards the payment of central tax and State tax, or as the case may be, Union territory tax, in that order; (b) the central tax shall first be utilised towards payment of central ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The electronic credit ledger shall be debited to the extent of discharge of any liability in accordance with the provisions of Section 49 [or Section 49A or Section 49B]. 11. Further Rule 86A which was introduced on 26th December, 2019 in the Act provides for the conditions of use of amount available in electronic credit ledger as under: Rule 86A. Conditions of use of amount available in electronic credit ledger- (1) The Commissioner or an officer authorised by him in this behalf, not below the rank of an Assistant Commissioner, having reasons to believe that credit of input tax available in the electronic credit ledger has been fraudulently availed or is ineligible in as much as:- a) the credit of input tax has been av ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... triction. 12. Thus a reading of Section 49 of GST Act permits availing of the amount in electronic ledger for making any payments towards output tax under the Act or under the Integrated Goods and Services Tax Act. Further Section 49 (5) and (6) describes the manner in which the amount of input tax credit available in the electronic ledger is to be utilised and provides that the balance in electronic cash ledger after payment of tax, interest, penalty, fee etc. may be refunded in accordance with the provisions of Section 54 of the GST Act. 13. Though before the learned CMM and in the reply, the case of the respondent is that the ITCs being fraudulent the same cannot be availed of, during the course of arguments, learned counsel for ..... X X X X Extracts X X X X X X X X Extracts X X X X
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