DESCRIPTION OF THE MATTER
- A major portion of the input tax credit had been blocked in the e-credit ledger with no specific reason specified therein which would have validated the blockage of credit.
- With the amount of such arbitrarily blocked credit towering high and exceeding rupees 1 crore could not be forgone and certain way has to be find out.
- Two ways available were, either
- To invoke the writ remedy under article 226 of the Constitution of India, or
- Representing before the proper officer and getting the credit unblocked by addressing the requirements and presenting the necessary documents and information about the case.
- The proper officer has been vested with stringent powers under the law wherein he can take more stringent actions unless satisfied.
OUR ACTION
- While exercising our prudence in order to save the time and efforts, we chose the second way of presenting our grievance before the ld. officers at various levels in the department.
- Representation of our facts for re-adjudication of the case submitted.
- Submission of all the properly maintained records with respect to the information furnished in GSTR-3B and its reconciliation with GSTR-2A.
- Explanation of the rationale behind the representation for unblocking of credit made at great length.
- Rigorous visits were made to the department for a continuous period of 15 days, thorough communication and explanation made before the officers.
- Asserting our facts and presenting our stance to get the credit unblocked by convincing the officers at five different levels reaching up to the Principal Commissioner.
DEPARTMENT PROCEEDINGS
- Taking a note of the various submissions made, the blocked amount of electronic credit ledger was unblocked.
- The action was taken after obtaining approval from Hon’ble Principal Commissioner.
BENEFITS TO THE CLIENT
- Approval of highest officer in the Commissionerate i.e. Principal Commissioner obtained and therefore, any similar action in future is surely not expected for the same period.
INSIGHTS
Folks, there are always two ways but representing can prove to be an excellent resort to present your facts before the department when the all the records are meticulously kept & maintained to justify your claims rather than going for the long-drawn judicial procedures and which can still lead to future inquiries under a separate provision unless the officer is satisfied.
Therefore, choose appropriately!!!!