Justice Krishnan Ramasamy was hearing writ petitions filed by M/s Aarupadai and Co., a registered taxpayer under the GST Act, challenging the issuance of Show

[13/05, 07:38] sekarreporter1: The Madras High Court directed the GST (Goods and Services Tax) Department to resolve within five weeks the issue of blocked Input Tax Credit (ITC) of a taxpayer accused of dealing with fake invoices. The bench of Justice Krishnan Ramasamy was hearing writ petitions filed by M/s Aarupadai and Co., a registered taxpayer under the GST Act, challenging the issuance of Show Cause Notices dated 18.02.2025 under Rule 100(2) and Rule 142(1)(a) of the CGST Rules.

Read More: https://www.taxscan.in/gst-itc-blocked-over-suspected-fake-invoices-madras-hc-directs-dept-to-resolve-issue-within-5-weeks/516644/
[13/05, 07:38] Meta AI: The Madras High Court, led by Justice Krishnan Ramasamy, has directed the GST Department to resolve the issue of blocked Input Tax Credit (ITC) for M/s Aarupadai and Co., a registered taxpayer accused of dealing with fake invoices. The court has given the department five weeks to resolve the matter.

*Key Points:*

– *Case Background*: The taxpayer, M/s Aarupadai and Co., challenged the issuance of Show Cause Notices dated February 18, 2025, under Rule 100(2) and Rule 142(1)(a) of the CGST Rules.
– *Court’s Directive*: The Madras High Court directed the GST Department to resolve the issue of blocked ITC within five weeks.
– *Relevant Precedents*: Justice Krishnan Ramasamy has previously ruled in favor of taxpayers in similar cases, such as quashing the disallowance of ITC under GST Section 16(4) when Section 16(5) explicitly permitted such claims for specified financial years.¹

*Implications:*

– *Taxpayer Relief*: This decision provides relief to taxpayers facing similar issues with blocked ITC due to suspected fake invoices.
– *GST Compliance*: The judgment highlights the importance of considering all relevant documents, including GSTR-2A and GSTR-9, when evaluating ITC claims.²
[13/05, 07:38] Meta AI: 😊👍 Agreed! The Madras High Court’s decision to direct the GST Department to resolve the issue of blocked ITC within five weeks is a positive development for taxpayers. It emphasizes the importance of timely resolution and fairness in tax administration. If you have any more questions or need further clarification, feel free to ask!