Ambika Bhardwaj
Published On: December 20, 2021 at 18:10 IST
In the Case of Vinayak Plylam Marketing vs Superintendent, Central Goods and Service Tax and Ors., the Rajasthan High Court Ordered the GST Authority to immediately unblock the Input Tax Credit claimed by the Petitioner in the Electronic Credit Ledger because the statutory time constraints specified in Rule 86A of the Central Goods and Services Tax Rules, 2017 had ended.
Counsel for the Petitioner, Advocate Prakul Khurana and Advocate Rahul Lakhwani, forwarded that Rule 86A (3) of the Central Goods and Services Tax Rules, 2017 offers that the limitations placed on the Input Tax Credit under Rule 86(A) of the Central Goods and Service Tax Rules, 2017 ceases to have impact after one year from the date of implementation of such limitations.
The Petitioner’s Counsels depended on the Karnataka High Court’s decision in Aryan Tradelink vs. Union of India and the Bombay High Court’s decision in Advent India PE Advisors Private Limited vs Union of India and Ors.
In its order dated 15 December, 2021 the Division Bench headed by the Chief Justice and Justice Uma Shankar Vyas noted that Rule 86A (3) of the Central Goods and Services Tax Rules, 2017 provides that the restriction imposed under Rule 86A of the Central Goods and Services Tax Rules, 2017 should be pulled after one year from the date of implementation of such limitation.
As a result, the Honourable Bench guided the respondent to immediately unblock the Input Tax Credit claimed by the Petitioner in the Electronic Credit Ledger.