9911796707
TMI Blog2025 (2) TMI 410X X X X Extracts X X X X X X X X Extracts X X X X ..... 7th September, 2024. His client has challenged said order inasmuch as it is alleged justification of appropriating future input tax credit as becomes available to his client. 2. He submits, rule 86A in Orissa Goods and Services Tax Rules, 2017 allows for blocking of the electronic ledger for a period of one year. Negative blocking is a device for appropriation. We by our judgment dated 10th September, 2024 in his client's case had affirmed that an assessee can apply to satisfy the authority, during the blocking period of maximum one year to show that there is no reason to continue to block. 3. He relies on view taken by a division Bench of Telengana High Court on judgment dated 18th March, 2024 available at (2024) 18 Centax 134 (Telangana ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lent to such credit. However, there is no power conferred upon the authorities for block of the credit to be availed by the petitioner in future." 4. Mr. Mishra, learned advocate, Senior Standing Counsel appears on behalf of revenue and submits, there has been compliance with direction made in our judgment dated 10th September, 2024 (supra). He relies on our another judgment dated 23rd October, 2024 in W.P.(C) No.26298 of 2024 (M/s. Amit Metaliks Company, Sundergarh v. Joint Commissioner of State Tax, Enforcement Range, Sambalpur and others). Paragraphs 6 and 7 from the said judgment are reproduced below. "6. Revenue is required to answer in uploading information in the electronic ledger to show that petitioner has negative ITC. This th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Mr. Sahoo submits, he can demonstrate that the allegation of goods not received, for blocking his client's input tax credit with intent to appropriate and amounting to negative blocking, cannot be sustained. Impugned order purporting to justify the blocking, it is apparent that it was made without basis. In this connection, we reproduce below paragraph 5 from our judgment dated 10th September, 2024 (supra). "5. Sub-rules (2) and (3) in rule 86A are reproduced below. "(2) The Commissioner, or the officer authorized 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) Such restriction shall cause to have effect after the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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