Order date – 11 August 2022

Key takeaways – 

• This appeal is filed by Prasanna Kumar Thakkar is against the order dated 16th November, 2021 passed in W.P.A. No.1474 of 202.
• The department allegedly recovered tax without issuance of any order under Section 74(9) of the Central Goods and Services Tax Act and blocked the input tax credit ledger without intimating the appellant the reason. 
• The respondent contended that during the course of investigation, it is the appellant, who had voluntarily came forward to deposit a sum of Rs.40 lakhs. Further, the department is in the process of issuing show cause notice and the same would be shortly issued.
• The court directed the department to issue a show cause notice to the appellant. Until then, department is directed not to initiate any coercive action against the appellant.
• With regard to the submission that the appellant’s input tax credit ledger has been blocked, the same is an independent issue and cannot be considered in this writ petition.