Whether non-payment to supplier can leading to blocking of ITC

Last updated: 14 January 2023

Court :
Delhi High Court

Brief :
The Commissioner or the authorized officer may, on his own or based on submission of the assessee may examine the matter afresh. After being satisfied that the ITC availed initially considered being fraudulently or ineligible, it is no more ineligible or wrongly availed. He may allow the use of the ITC, so disallowed/restricted, to the extent of eligibility. However, the reasons for allowing the debit of ECL, earlier disallowed, shall be duly recorded on file in writing before allowing debit of electronic credit ledger. Moreover, the restriction is only for one year and shall cease to have effect after the expiry of a period of one year from the date of imposing such restriction.

Citation :
Sunny Jain v. Union of India & others [Writ Petition (C) 6444/2022 � Delhi High Court]