Wipro Ltd vs Assistant Commissioner Of Gst ...
2021 Latest Caselaw 3494 Del

                              $~425
                              *     IN THE HIGH COURT OF DELHI AT NEW DELHI
                              +      W.P.(C) 14422/2021
                                     WIPRO LTD                                               ..... Petitioner
                                                        Through      Mr.V.Chandrashekara Bharathi,
                                                                     Advocate.
                                                        versus

                                     ASSISTANT COMMISSIONER OF GST MCIE DIVISION CGST
                                                                            ..... Respondent
                                                        Through      Mr.Abhinav Kalia, Advocate.


                              %                                     Date of Decision: 16th December, 2021
                              CORAM:
                              HON'BLE MR. JUSTICE MANMOHAN
                              HON'BLE MR. JUSTICE NAVING CHAWLA
                                                          JUDGMENT

MANMOHAN, J (Oral):

C.M.No.45404/2021 Exemption allowed, subject to all just exceptions. Accordingly, the application stands disposed of. W.P.(C) No.14422/2021

1. Present writ petition has been filed challenging Rule 86A of the CGST Rules as illegal, arbitrary and bad in law. Petitioner also seeks a direction declaring the continuance of blocking of petitioner's ITC of INR 8,72,22,741/- beyond a period of one year as illegal on account of violation of express mandate of Rule 86A(3) and to unblock and restore the credit of the petitioner.

Signature Not Verified Digitally Signed By:JASWANT SINGH RAWAT Signing Date:18.12.2021 15:44:35

2. Learned counsel for the petitioner states that the respondent had not given any reason to the petitioner justifying the blocking of credit and, thus, the impugned action is in violation of the principles of natural justice. He states that Rule 86A(3) of the CGST Rules, 2017 mandates that any restriction on the usage of ITC shall cease to have effect after the expiry of a period of one year from the date of imposing of such restriction. However he points out that in the present case, despite the period of one year having lapsed on 25th January, 2021, the respondent has not unblocked the ITC.

3. Learned Counsel for the petitioner states that despite the letters written by the petitioner on 15th June 2021 and 17th September, 2021 to the respondent, the respondent has neither provided a response justifying the blocking of ITC nor has unblocked the ITC.

4. Issue notice. Mr.Abhinav Kalia, Advocate accepts notice on behalf of the respondent. He states that he has no instructions in the present case.

5. However, keeping in view the fact that the petitioner's representations/letters dated 15th June 2021 and 17th September, 2021 have not been decided till date, the present writ petition is disposed of with a direction to the respondent to decide the aforesaid representations/letters by way of a reasoned order in accordance with law within four weeks. The rights and contentions of all the parties are left open.

MANMOHAN, J

NAVIN CHAWLA, J DECEMBER 16, 2021KA

Signature Not Verified Digitally Signed By:JASWANT SINGH RAWAT Signing Date:18.12.2021 15:44:35