2025 (2) TMI 410

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..... t in the electronic ledger on availing available therein, input tax credit. Thus, the blocking serves purpose of being security for revenue on recovery. Petition disposed off.
HON'BLE MR. JUSTICE ARINDAM SINHA, ACTING CHIEF JUSTICE AND HON'BLE MR. JUSTICE M.S. SAHOO Advocates appeared in this case: For the Petitioner : Mr. Jagabandhu Sahoo, Senior Advocate Ms. Kajal Sahoo, Advocate For the Opposite Parties : Mr. Sunil Mishra, Senior Standing Counsel JUDGMENT PER ARINDAM SINHA, ACJ. 1. Mr. Sahoo, learned senior advocate appears on behalf of petitioner and submits, pursuant to judgment dated 10th September, 2024 revenue made fresh order dated 27th September, 2024. His client has challenged said order inasmuch as it is alleged j .....

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..... that the action on the part of the respondents in passing an order of negative credit to be contrary to Rule 86(A). In the event, if no input tax credit was available in the credit ledger, the rules does not provide for insertion of negative balance in the ledger and therefore what was permissible was only to the block the electronic credit ledger and under no circumstances could there had been an order for insertion of negative balance in the ledger. If there is a credit balance available, then the authorities concerned in terms of provisions of Rule 86(A) may for reasons to be recorded in writing not allowed the credit of the said amount available equivalent to such credit. However, there is no power conferred upon the authorities for bl .....

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..... en able to demonstrate from impugned order, assertion by revenue of appropriation. On the contrary Mr. Mishra submits, report on investigation has been submitted and proceedings are to be initiated. 6. There is no necessity for us to take a view regarding appropriation in relation to negative blocking. We do see from Laxmi Fine Chem (supra) that right was reserved to revenue to initiate appropriate recovery proceedings under section 73 or also under section 74 rather than invoking rule 86A. We are in possession of submission made on behalf of revenue that investigation report has been filed. In the circumstances, nothing further is required to be said. 7. Mr. Sahoo submits, he can demonstrate that the allegation of goods not received, for .....

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