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TMI BlogITC of FY 2017-18 blockedX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear experts, our client purchased goods from a supplier in the FY 2017-18.Now the registration of the supplier cancelled by the department from the date which is before our purchase date and our ITC blocked by the department on dated 30.4.2024.My querry is whether this action of the department is legally valid as we have not been issued any show cause notice the time limit of notice u/s 73 / 74 h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as already expired. - Reply By Ganeshan Kalyani - The Reply = Sir, in the below case law, the Hon'ble High Court modified the GST cancellation order to operate prospectively from the date of issuance of the SCN thereby holding that, GST registration should not be cancelled retrospectively when the SCN issued is vague in nature and no opportunity was granted to file objection against retrospect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ive cancellation. M/s. Friends Media Add Company v. Principal Commissioner of Goods and Service Tax - 2024 (2) TMI 806 - DELHI HIGH COURT - Reply By Shilpi Jain - The Reply = There are also cases where the HCs have held that in spite of the retrospective cancellation of registration the ITC cannot be denied in the hands of the recipient since at the time purchases were made by the recipient the re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gistration of the supplier was active. - Reply By Shilpi Jain - The Reply = If any order has been passed consider filing an appeal. Else, file a writ in HC. - Reply By SUSHIL BANSAL - The Reply = Tysm Ganeshan Sir Shilpi madam for your quick response.My querry is under which provisions the department can block ITC of the recepient when the time to issue SCN u/s 73 / 74 has already elapsed.If the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction is beyond the law then certainly writ petition/appeal to be filed. - Reply By Padmanathan Kollengode - The Reply = Rule 86A per say does not speak about time limit. It is only a temporary step taken on a protective basis. However the final recovery anyways can be done only under section 73 / 74 which in your case is time barred. So, it may be a good ground to raise. Also consider whether pri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nciples of natural justice etc... have been adequately followed. In case the amount is huge and your working capital will be affected, you may also consider writ petition. - Reply By SUSHIL BANSAL - The Reply = Tysm padmanathan Sir for your expert advice.I think time limit for section 74(10) order is 05.02.2025 for the FY 2017-18 hence the department can take action u/s 74 .Sorry to mention that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ime limit for section 74 has elapsed.Plz correct me if I am wrong. - Reply By KASTURI SETHI - The Reply = Last date for issuance of SCN for 17-18 is 0 5 or 07/11.2024. - Reply By Padmanathan Kollengode - The Reply = For invoking Sec 74 Dept has to establish mens rea. Merely because supplier's registration has been cancelled doesnt mean that there is fraud/ intention to evade by recipient unles ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s there is a collusion between the two. - Reply By SUSHIL BANSAL - The Reply = Sir, I think it should be 6 months prior to 05.02.2025. - Reply By KASTURI SETHI - The Reply = .Sh.Sushil Bansal Ji, W.r.t. your above post, even then the issuance of SCN is not time barred, if the elements of mens rea are present. If all the transactions are genuine and duly accounted for in the books of account, retro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... spective cancellation of the registration of the supplier cannot disentitle the buyer/recipient. Regarding the invocation of the extended period, the burden of proof is cast upon the department (there are so many case laws) but regarding correct availment of ITC, the burden of proof is cast upon the assessee (buyer) under Section 155 of CGST . In this case, investigation is in progress. We cannot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... expect disclosure of full facts on public forum. Otherwise also the querists hesitate to disclose full facts on the public forum. and In the absence of full facts, correct and fool-proof advice is not possible. Right time of seeking advice on public forum is after the issuance of SCN and NOT prior to the issuance of SCN. It is not in the interest of the assessee though name is not disclosed. No ne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to explain in detail. Half-disclosure of facts means half-baked reply. - Reply By SUSHIL BANSAL - The Reply = Tysm sir for your guidance - Reply By SUSHIL BANSAL - The Reply = Shilpi Madam, Could you plz tell me one or two latest important HC judgements on ITC blocking - Reply By KASTURI SETHI - The Reply = (1) 2024 (1) TMI 1049 - MADRAS HIGH COURT IN THE CASE OF TVL. CLEON OPTOBIZ PVT. LTD., R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... EPRESENTED BY ITS DIRECTOR MR. BHAVESH K SHAH VERSUS THE ASSISTANT COMMISSIONER (ST), CHENNAI (2) 2023 (3) TMI 533 - SUPREME COURT IN THE CASE OF THE STATE OF KARNATAKA VERSUS M/S ECOM GILL COFFEE TRADING PRIVATE LIMITED (3) 2023 (4) TMI 912 - MADRAS HIGH COURT IN THE CASE OF TVL. SAHYADRI INDUSTRIES LTD. VERSUS THE STATE OF TAMIL NADU, REPRESENTED BY, THE JOINT COMMISSIONER (CT), ERODE - Reply By ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... SUSHIL BANSAL - The Reply = tysm sir - ITC of FY 2017-18 blocked - Query Started By: - SUSHIL BANSAL Dated:- 2-5-2024 Last Replied Date:- 7-5-2024 Goods and Services Tax - GST - Got 14 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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