Order Date – 24 July 2025

Parties: M/s Transtech Solution Vs Commissioner CT & GST & Ors.

Facts –

• The Petitioner, M/s Transtech Solution, was intimated that the Input Tax Credit has been blocked against the Electronic Credit Ledger available on GST portal based on alleged transactions with non-existent suppliers.
• It was submitted that both suppliers were active and compliant for FY 2024–25. Further, a detailed representation dated 03.05.2025 was submitted but not adjudicated by the authorities.

Issue –

• Whether ITC can be blocked under Rule 86A without adjudicating the taxpayer’s reply and examining the genuineness of suppliers?

Order –

• The Division Bench of Hon’ble High Court referred to a Judgment rendered by the Delhi High Court in Banson Enterprises Vrs. Assistant Commissioner, W.P.(C) No.6503 of 2025, decided on 15.05.2025 [reported at 2025 SCC OnLine Del 3952] declining to entertain writ petition challenging Show Cause Notice, which also has application to the challenging any order or decision which is available for challenge before the appellate authority under the statutory framework.
• Finding the present case in similitude with that of the above case where decision has been rendered in the context of allegation against the availing input tax credit that fact-finding on the nature of dispute set up by the Department can be subject-matter for adjudication by the statutory authority empowered in this behalf and thereafter, if need arises the same could be tested before the other statutory authorities in the hierarchy of adjucatory process.
• Having found that it is not a fit case for exercise of extraordinary jurisdiction under Articles 226 and 227 of the Constitution of India, this Court refrains from entertaining the writ petition.
• In the result, therefore, without expressing any opinion touching the merit of the matter, the writ petition disposed.