9911796707
TMI Blog2024 (10) TMI 491X X X X Extracts X X X X X X X X Extracts X X X X ..... ed under GST and deal with Lead, lead scrap and other incidental businesses and make purchases from dealers registered under GST and accordingly, availed input tax credit (for short 'the ITC') on such purchases and the said ITC was available in the Electronic Credit Ledgers (for short, "ECL") of the appellants. By the orders dated 27.06.2023 impugned in the instant writ petitions, the ECL of the appellants were blocked by the respondents by invoking Rule 86A of the Central Goods and Services Tax Rules, 2017 (for short 'the CGST Rules') which led to the appellants challenging the same by way of the instant writ petitions. The writ petitions were opposed and contested by the respondents / revenue. By the impugned common order, the learned Single Judge rejected the various contentions / grounds urged by the appellants and disposed of the petitions by issuing certain directions. Aggrieved by the impugned common order, appellants are before this Court by way of the present appeals. 3. We have heard Sri. V. Raghuraman, learned Senior Counsel and Amicus Curiae and learned counsel for the appellants as well as learned AAG for the respondents - revenue and perused the material on record. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... blocked by the respondents without verifying the genuineness of the transaction and a bona fide purchaser cannot be denied ITC on account of a supplier's default and the recipient cannot be made to suffer denial of ITC for the wrong doings of the supplier. (v) It was submitted that blocking of ECL would defeat the principles and purpose of value added tax and would lead to a cascading effect thereby resulting in irreparable injury and hardship to the appellants especially when ITC was a valuable right which cannot be confiscated in a manner opposed to law. It is also pointed out that the procedure prescribing the requirements for blocking ECL has been explained by the respondents themselves in the CBEC Circular dated 02.11.2021 which would indicate that the impugned orders are contrary to the said circular also. (vi) That Rule 86A was introduced pursuant to GST council discussions to curb the menace of fake invoices and therefore, a mechanism to block input tax credit was devised. (vii) Rule 86A specifies the conditions for use of amount available in the electronic credit ledger. It states that where the department has reasons to believe that credit of input tax available in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ineligible ITC and whether the same is covered under the grounds mentioned in Rule 86A(1). (xii) The power of disallowing debit of amount from electronic credit ledger must not be exercised in a mechanical manner and careful examination of all the facts of the case is important to determine case(s) fit for exercising power under Rule 86A. The remedy of disallowing debit of amount from electronic credit ledger being, by its very nature, extraordinary, has to be resorted to with utmost circumspection and with maximum care and caution. It contemplates 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 in Rule 86A. (xiii) Further, the impugned orders have been passed based on the communication received from other officers, without any independent application of mind. This shows that exercise of power under Rule 86A was not because he was independently satisfied about the need for blocking the ECL ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Judge has resulted in erroneous conclusion warranting interference in the present appeals. In support of his submissions, learned Senior counsel has relied upon the following judgments:- 1. Rule 86A of CGST Rule, 2017 2. Agenda of 38th GST Council Meeting 3. Para 35.2 of Minutes of 38th GST Council 4. Auto and General Engineering Citizen Society Vs State of Andhra Pradesh - AIR 1988 AP 266; 5. State Bank of Patiala Vs. S.K. Sharma - (1996) 3 SCC 364; 6. Canara Bank Vs. Devasis Das - (2003) 4 SCC 557; 7. Charan Lal Sahu Vs. Union of India - AIR 1990 SC 1480; 8. Sara India (Firm) Vs. Commissioner of Income Tax - 2008(226)ELT 22(SC); 9. C.B. Gautham Vs. Union of India - 1992 (65) taxman 440) (SC); 10. KI Shephard Vs. Union of India - (1987) 4 SCC 431; 11. HL Trehan Vs. Union of India - (1989) 1 SCC 764; 12. Dee Vee Project Ltd Vs. Government of Maharashtra - 2022(135) taxman.com 189(Bom); 13. Calcutta Discount co Ltd. Vs. ITO - 1961(41) ITR 191(SC); 14. Century Metal Recycling Ltd vs. Union of India - 2019(367) ELT 3 (SC); 15. CIT Vs. Kelvinator of India Limited - (2010) 2 SCC 723; 16. New Nalbandh trader Vs. State of Gujarat - 2022 (66) GSTL 334 (Gu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tronic credit ledger, utilization of ITC etc., by a registered dealer has been succinctly explained by the Division Bench of Gujarath High Court in Samay Alloys' case supra, wherein it was held as under:- 9. Before we proceed to discuss the scope and applicability of rule 86A, we must give a fair idea as to what is an electronic credit ledger in the GST. One of the benefits under the GST regime is that the payment of tax under the different heads is done online. To make the GST payment process convenient, each registered taxpayer gets two electronic ledgers. These ledgers include ; (1) electronic liability register and (2) electronic credit ledger. The electronic liability register reflects the cash available to settle the tax liability. Whereas, the electronic liability ledger showcases the amount of tax payable by the taxpayer. Finally, the electronic credit ledger displays the input-tax credit balance available to the registered taxpayer. 10. The taxpayer raises a challan in the form GST PMT-06 to begin with the GST payment. This challan contains the details of the amount to be deposited towards the tax, interest, penalty, fees or any other amount and it is valid for a perio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in making payments towards the outward tax liability by the registered taxpayer. 19. The electronic credit ledger shall be maintained in the form GST PMT-02. This form shall be maintained on the common portal for every registered person eligible to claim input-tax credit under GST Act. Every claim of the input-tax credit is credited to the electronic credit ledger. 8.1 In this context, it would be relevant to extract Rule 86A of the CGST Rules, which reads as under:- 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 availed on the strength of tax invoices or debit notes or any other document prescribed under rule 36- i. issued by a registered person who has been found non-existent or not to be conducting any business from any place for which registration has been obtained; or ii. without receipt of goods or services or both; or b) the credi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ext, a plain/bare reading of Rule 86A will indicate that there is absolutely no express provision for compliance with principles of natural justice; however, there could arise occasions/situations when principles of natural justice can be read into statutory provisions though they are not expressly present in the provisions. 8.4 In CB Gautam's case supra, the Constitution Bench of the Apex Court held as under: "28. In the light of what we have observed above, we are clearly of the view that the requirement of a reasonable opportunity being given to the concerned parties, particularly, the intending purchaser and the intending seller must be read into the provisions of Chapter XX-C. In our opinion, before an order for compulsory purchase is made under section 269UD, the intending purchaser and the intending seller must be given a reasonable opportunity of showing cause against an order for compulsory purchase being made by the appropriate authority concerned. As we have already pointed out, the provisions of Chapter XX-C can be resorted to only where there is a significant undervaluation of property to the extent of 15 per cent. or more in the agreement of sale, as evidenced by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the United States of America " to make a fortress out of the dictionary. " Again, there is no express provision in Chapter XX-C barring the giving of a show cause notice or reasonable opportunity to show cause nor is there anything in the language of Chapter XX-C which could lead to such an implication. The observance of the principles of natural justice is the pragmatic requirement of fair play in action. In our view, therefore, the requirement of an opportunity to show cause being given before an order for purchase by the Central Government is made by an appropriate authority under section 269UD must be read into the provisions of Chapter XX-C. There is nothing in the language of section 269UD or any other provision in the said Chapter which would negate such an opportunity being given. Moreover, if such a requirement were not read into the provisions of the said Chapter, they would be seriously open to challenge on the ground of violation of the provisions of article 14 on the ground of non-compliance with the principles of natural justice. The provision that, when an order for purchase is made under section 269UD, reasons must be recorded in writing is no substitute for a provi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the aim of rules of natural justice is to secure justice or to put it negatively to prevent miscarriage of justice. These rules can operate only in areas not covered by any law validly made. They do not supplant the law but supplement it. (Also see : ITO v. Madnani Engineering Works Ltd) 12. In Swadeshi Cotton Mills Co. Ltd. v. Union of India, R. S. Sarkaria J., speaking for the majority in a three-judge Bench, lucidly explained the meaning and scope of the concept of " natural justice" . Referring to several decisions, his Lordship observed thus: "Rules of natural justice are not embodied rules. Being means to an end and not an end in themselves, it is not possible to make an exhaustive catalogue of such rules. But there are two fundamental maxims of natural justice, viz., (i) audi alteram partem, and (ii) nemo judex in re sua. The audi alteram partem rule has many facets, two of them being (a) notice of the case to be met ; and (b) opportunity to explain. This rule cannot be sacrificed at the altar of administrative convenience or celerity. The general principle-as distinguished from an absolute rule of uniform application-seems to be that where a statute does not, in terms, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wn by the courts as being the minimum protection of the rights of the individual against the arbitrary procedure that may be adopted by a judicial, quasi-judicial and administrative authority while making an order affecting those rights, the court said: "Concept of natural justice has undergone a great deal of change in recent years. Rules of natural justice are not rules embodied always expressly in a statute or in rules framed thereunder. They may be implied from the nature of the duty to be performed under a statute. What particular rule of natural justice should be implied and what its context should be in a given case must depend to a great extent on the fact and circumstances of that case, the frame-work of the statute under which the enquiry is held. The old distinction between a judicial act and an administrative act has withered away. Even an administrative order which involves civil consequences must be consistent with the rules of natural justice. The expression ' civil consequences' encompasses infraction of not merely property or personal rights but of civil liberties, material deprivations, and non-pecuniary damages. In its wide umbrella comes everything tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o get any encroachment removed with or without notice, a Constitution Bench of this court observed as follows: "It must further be presumed that, while vesting in the Commissioner the power to act without notice, the Legislature intended that the power should be exercised sparingly and in cases of urgency which brook no delay. In all other cases, no departure from the audi alteram partem rule (' Hear the other side' ) could be presumed to have been intended. Section 314 is so designed as to exclude the prin ciples of natural justice by way of exception and not as a general rule. There are situations which demand the exclusion of the rules of natural justice by reason of diverse factors like time, place the apprehended danger and so on. The ordinary rule which regulates all procedure is that persons who are likely to be affected by the proposed action must be afforded an opportunity of being heard as to why that action should not be taken. The hearing may be given individually or collectively, depending upon the facts of each situation. A departure from this fundamental rule of natural justice may be presumed to have been intended by the Legislature only in circumstances w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent of affording an opportunity of hearing is to be read into section 142 (2A), in Rajesh Kumar* it has been held that prejudice to the assessee is apparent on the face of the said statutory provision. It has been observed that on account of the special audit, the assessee has to undergo the process of further accounting despite the fact that his accounts have been audited by a qualified auditor in terms of section 44AB of the Act. An auditor is a professional person. He has to function independently. He is not an employee of the assessee. In case of misconduct, he may become liable to be proceeded against by a statutory authority under the Chartered Accountants Act, 1949. Besides, the assessee has to pay a hefty amount as fee of the special auditor. Moreover, during the audit of the accounts again by the special auditor, he has to answer a large number of questions. Referring to the decision of this court in Binapani Dei** wherein it was observed that when by reason of an action on the part of a statutory authority, civil or evil consequences ensue, the principles of natural justice are required to be followed and in such an event, although no express provision is laid down in thi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d incidental expenses has been taken over by the Central Government, civil consequences would still ensue on the passing of an order for special audit. 8.6 In the light of the afore stated principles, we are of the view that though Rule 86A does not expressly/specifically provide for adherence to principles of natural justice, the same would necessarily have to be read into Rule 86A and complied with while invoking the said provision. It would also be apposite to state that when the ECL of the appellants was sought to be blocked and such credit cannot be utilised for upto 1 year, the said blocking would entail and result in serious civil consequences for the appellants warranting compliance with the principles of natural justice and providing an opportunity of hearing to the appellants. 8.7 The learned Single Judge has come to the conclusion that a pre-decisional hearing of the appellants was not required and that a post-decisional hearing was sufficient to invoke Rule 86A and passed the impugned order; in this context, it is relevant to state that in Sahara India's case supra, the Apex Court held as under: "22. We shall now deal with the submission of learned counsel appearing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng, even from the language of the said provision it is plain that the opportunity of being heard is only in respect of the material gathered on the basis of the audit report submitted under sub-section (2A) and not on the validity of the original order directing the special audit. It is well-settled that the principle of audi alteram partem can be excluded only when a statute contemplates a post-decisional hearing amounting to a full review of the original order on merit, which, as explained above, is not the case here. 24. The upshot of the entire discussion is that the exercise of power under section 142 (2A) of the Act leads to serious civil consequences and, therefore, even in the absence of express provision for affording an opportunity of pre-decisional hearing to an assessee and in the absence of any express provision in section 142 (2A) barring the giving of reasonable opportunity to an assessee, the requirement of observance of the principles of natural justice is to be read into the said provision. 8.8 As can be seen from the aforesaid judgment, ordinarily, a post-decisional hearing is not a substitute for pre decisional hearing and that pre-decisional hearing is impor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the representation at such a post-decisional opportunity. In this connection, we may refer to a recent decision of this Court in K.I. Shephard & Ors. v. Union of India & Ors., JT 1987 (3) 600. What happened in that case was that the Hindustan Commercial Bank, The Bank of Cochin Ltd. and Lakshmi Commercial Bank, which were private Banks, were amalgamated with Punjab National Bank, Canara Bank and State Bank of India respectively in terms of separate schemes drawn under Section 45 of the Banking Regulation Act, 1949. Pursuant to the schemes, certain employees of the first mentioned three Banks were excluded from employment and their services were not taken over by the respective transferee Banks. Such exclusion was made without giving the employees, whose services were terminated, an opportunity of being heard. Ranganath Misra, J. speaking for the Court observed as follows: "We may now point out that the learned Single Judge of the Kerala High Court had proposed a post-amalgamation hearing to meet the situation but that has been vacated by the Division Bench. For the reasons we have indicated, there is no justification to think of a post-decisional hearing. On the other hand, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vailing the ITC available in the ECL; the said process of the appellants utilizing/availing the ITC is not instantaneous/immediate unlike bank accounts, from which monies can be withdrawn, if the same are not attached and the said process culminating in the ITC being converted to actual benefit in favour of the appellants would consume time as explained by the Gujarat High Court in Samay Alloys' case supra; in other words, it was not physically possible for the appellants to immediately/forthwith encash/withdraw the ITC available in its ECL so as to warrant emergent/urgent blocking of the ECL without providing a pre-decisional hearing to the appellants; at any rate, upon the respondents-revenue issuing appropriate notices to the appellants providing pre-decisional hearing proposing to invoke Rule 86A, the respondents-revenue would be entitled to supervise/monitor the proceedings including the ECL of the appellants and if circumstances so warrant, respondents-revenue would be entitled to block the ECL even before completion of pre-decisional hearing was completed; viewed from this angle also, the impugned orders passed by the respondents-revenue blocking the ECL of the appellants wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oneous conclusion that the respondents-revenue had fulfilled/satisfied the aforesaid twin/dual pre-requisites/requirements viz., respondents had 'reasons to believe' which were based on cogent material available with them to invoke Rule 86A of the CGST Rules; in this context, the learned Single Judge failed to appreciate that the only 'reason to believe' was alleged satisfaction of certain officers who conducted a field visit in Goa and noticed that the said suppliers were not in business. It is well settled that the expression 'reason to believe' would necessarily mean that the respondents must arrive at a satisfaction based on their own independent inquiry and not upon borrowed inquiry as has been done in the instant case. 9.2 The learned Single Judge also failed to appreciate that Rule 86A was drastic and draconian in nature warranting existence of "reasons to believe" before exercising the said power by strictly complying with all the conditions / requirements of the said provision; further, an order blocking the ECL by invoking Rule 86A cannot be passed merely based on investigation reports and without any application of mind and that the onus was on the respondents - revenue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it of an amount from electronic credit ledger in respect of a registered person, only after proper application of mind considering all the facts of the case, including the nature of prima facie fraudulently availed or ineligible input tax credit and whether the same is covered under the grounds mentioned in sub-rule (1) of rule 86A, as discussed in para 3.1.2 above; the amount of input tax credit involved; and whether disallowing such debit of electronic credit ledger of a person is necessary for restricting him from utilizing/ passing on fraudulently availed or ineligible input tax credit to protect the interests of revenue. 3.1.4 It is reiterated that the power of disallowing debit of amount from electronic credit ledger must not be exercised in a mechanical manner and careful examination of all the facts of the case is important to determine case(s) fit for exercising power under rule 86A.The remedy of disallowing debit of amount from electronic credit ledger being, by its very nature, extraordinary, has to be resorted to with utmost circumspection and with maximum care and caution. It contemplates an objective determination based on intelligent care and evaluation as distingu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds, "must have reasons to believe", the satisfaction must be reached on the basis of some objective material available before the authority and cannot be made on the flights of ones fancies or whims or caprices. 9.5 In the instant case, the electronic credit ledgers have been blocked solely on the basis of communication from another officer [Field visit report by the Asst. State Tax Officer, Vasco-D-Gama, (Goa)]. There was no tangible material to form any belief that the ITC lying in the appellants' ECL was on account of any fake invoice; it had proceeded to take action solely on the basis of a direction issued by another authority. Before the drastic measure to block a taxpayer's ECL is taken, it was necessary for the concerned officer to have some material to form a belief that the conditions under Rule 86A are satisfied by making an independent analysis before such action is taken and even this aspect has not been considered or appreciated by the learned Single Judge while passing the impugned order, which deserves to be set aside on this ground also. 9.6 The learned Single Judge also did not appreciate that the power of disallowing debit of amount from electronic credit ledge ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ents have proceeded solely on the basis that the supplier has been found to be non-existent or not to be conducting any business from the place which it has obtained registration, has blocked the input tax which is impermissible in law without checking the genuineness or otherwise of the transaction and consequently, the impugned orders are bald, vague, cryptic, laconic, unreasoned and non-speaking and deserve to be set aside. 9.9 While dealing with the provisions of the CGST Act, this Court in Xiaomi's case supra, wherein one of us speaking for the Court held as under: 10. A perusal of the impugned order will indicate that except for stating that there is likely addition of the amount mentioned in the order, no reasons, much less valid or cogent reasons are assigned by the 1st respondent as to how and why he has formed an opinion that it was necessary to provisionally attach the fixed deposits of the petitioner for the purpose of protecting the interest of the revenue. The requirements and parameters preceding passing of a provisional attachment order came up for consideration before the Apex Court in the case of Radha Krishan Industries' case (supra), wherein it was held as un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... atutory language which conditions the exercise of the power. The language of the statute indicates first, the necessity of the formation of opinion by the Commissioner; second, the formation of opinion before ordering a provisional attachment; third the existence of opinion that it is necessary so to do for the purpose of protecting the interest of the government revenue; fourth, the issuance of an order in writing for the attachment of any property of the taxable person; and fifth, the observance by the Commissioner of the provisions contained in the rules in regard to the manner of attachment. Each of these components of the statute are integral to a valid exercise of power. In other words, when the exercise of the power is challenged, the validity of its exercise will depend on a strict and punctilious observance of the statutory preconditions by the Commissioner. While conditioning the exercise of the power on the formation of an opinion by the Commissioner that "for the purpose of protecting the interest of the government revenue, it is necessary so to do", it is evident that the statute has not left the formation of opinion to an unguided subjective discretion of the Commissi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct on the basis of tangible material on the basis of which the formation of opinion is based in regard to the existence of the statutory requirement. While dealing with a similar provision contained in Section 45 [ Section 45 (1) provides as follows: "45. Provisional attachment.-(1) Where during the tendency of any proceedings of assessment or reassessment of turnover escaping assessment, the Commissioner is of the opinion that for the purpose of protecting the interest of the government revenue, it is necessary so to do, he may by order in writing attach provisionally any property belonging to the dealer in such manner as may be prescribed."] of the Gujarat Value Added Tax Act, 2003, one of us (Hon'ble M.R. Shah, J.) speaking for a Division Bench of the Gujarat High Court in Vishwanath Realtor v. State of Gujarat [Vishwanath Realtor v. State of Gujarat, 2015 SCC OnLine Guj 6564] observed : (Vishwanath Realtor case [Vishwanath Realtor v. State of Gujarat, 2015 SCC OnLine Guj 6564], SCC OnLine Guj para 26) "26. Section 45 of the VAT Act confers powers upon the Commissioner to pass the order of provisional attachment of any property belonging to the dealer during the pendency ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of provisional attachment was ultra vires Section 83 of the Act. 73. On 1-3-2021, the appellant has filed an appeal under Section 107 together with a deposit of Rs 32,15,488 representing ten per cent of the tax due. Section 107(6) contains the following stipulation: "107. (6) No appeal shall be filed under sub-section (1), unless the appellant has paid- (a) in full, such part of the amount of tax, interest, fine, fee and penalty arising from the impugned order, as is admitted by him; and (b) a sum equal to ten per cent of the remaining amount of tax in dispute arising from the said order, in relation to which the appeal has been filed." Sub-section (7) stipulates that: "107. (7) Where the appellant has paid the amount under sub-section (6), the recovery proceedings for the balance amount shall be deemed to be stayed." 74. Clause (a) of sub-section (6) provides that no appeal shall be filed without the payment in full, of such part of the amount of tax, interest, fine, fee and penalty arising from the impugned order as is admitted. In addition, under clause (b), ten per cent of the remaining amount of tax in dispute arising from the order has to be paid in relation to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment of tax and it is therefore necessary to do so for the purpose of protecting the interest of the Government revenue. In addition to the aforesaid mandatory requirements, before passing the provisional attachment order, it is also incumbent upon the authorities to come to a conclusion based on the tangible material that without attaching the provisional attachment, it is not possible in the facts of the given case to protect the revenue and that the provisional attachment order is completely warranted for the purpose of protecting the Government revenue. 9. Applying the principles laid down in Radha Krishan's case (supra) to the facts of the instant case, a perusal of the impugned provisional attachment order will clearly indicate that except for merely stating that since there is a likelihood of huge tax payments to be raised on completion of assessment and that for the purpose of protecting the revenue, it is necessary to provisionally attach the fixed deposit of the petitioners, the other mandatory requirements and pre-condition as laid down by the Apex Court have neither been complied with nor fulfilled or followed prior to passing the impugned order. It is apparent that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... who seems to have been influenced by the findings of the Investigation Wing and TPO and have not independently formed an opinion on the likely additions to be made during assessment proceedings. 15. As stated supra, in the light of existence of a legal mandatory pre-requirement and precondition of recording of formation of opinion which is in pari materia with "reasons to believe" in Section 281B of the I.T. Act, it was incumbent upon the 1st respondent to arrive at his own satisfaction and not borrowed satisfaction by proper application of mind and consequently, the impugned order which is bald, vague, cryptic, laconic, unreasoned and non-speaking order deserves to be set aside, particularly having regard the undisputed fact that except for stating that he was of the opinion that it was necessary to attach the fixed deposits for the purpose of protecting the interest of the revenue, no other reasons have been assigned by the 1st respondent in the impugned order. 16. A perusal of the impugned order will also indicate that there is no finding recorded as to why a provisional order of attachment had to be passed against the petitioner; it is significant to note that there is no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be quashed. Point No. 2 is also accordingly answered in favour of the appellants by holding that the respondents-revenue committed a grave and serious error/illegality/infirmity in passing the impugned orders blocking the Electronic Credit Ledgers of the Appellants by invoking Rule 86A of the CGST Rules. Re: Point No.3 10. While dealing with Points 1 and 2 supra, we have already come to the conclusion that the learned Single Judge committed an error in holding that a pre-decisional hearing was not required prior to passing the impugned orders and that the respondents had satisfied the requirements/ingredients for invocation of Rule 86A and that the said findings recorded by the learned Single Judge deserve to be set aside. Under these circumstances, upon re-appreciation, re-evaluation and re-consideration of the entire material on record, we are of the considered view that the order of the learned Single Judge is not only contrary to law but also the material on record warranting interference in the present appeals which deserve to be allowed. Point No. 3 is also accordingly answered in favour of the appellants by holding that the order of the learned Single Judge deserves t ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
