RAWMAN METAL & ALLOYS v. THE DEPUTY COMMISSIONER OF STATE TAX, THANE – BOMBAY HIGH COURT
High Court, Bombay
M.S. Sonak, Justice & Advait M. Sethna, Justice
RAWMAN METAL & ALLOYS
v.
THE DEPUTY COMMISSIONER OF STATE TAX, THANE
WRIT PETITION (L) NO. 10928 OF 2025 WITH INTERIM APPLICATION (L) NO. 11003 OF 2025 IN WRIT PETITION (L) NO. 10928 OF 2025 dated 07.10.2025
Law : GST
Act Name : Central Goods & Service Tax Act, 2017
Relevant Section : Section 49
Rule Number : Rule 86A
Rule Name : Central Goods & Services Tax Rules, 2017
Decision : In favour of assessee
Negative blocking of e-credit ledger – Petitioner contended blocking ITC when no credit available ultra vires – Revenue argued for broader interpretation allowing block for entire fraudulently availed ITC including future credits – Court held Rule 86-A permits blocking only to extent of ITC available in ledger at time of order, not future credits – Negative blocking ultra vires – Court found no ambiguity, applied literal reading per fiscal statute principles – Held: Order quashed – Blocked ITC to be restored within 15 days – Interim application disposed.
Represented By:
Counsel for the Petitioner: Parmeet Singh, with Vinit Dhage
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