Summary
- The Delhi High Court has ruled that input tax credit blocked under Rule 86A cannot be used to satisfy the mandatory pre-deposit for GST appeals under Section 107(6) of the Central Goods and Services Tax Act, 2017.
- Spherion Solutions Private Limited sought to appropriate ₹3,33,257/- from its blocked credit for an appeal against a tax demand of ₹33,32,568/-, but the court found that such blocked credit does not constitute payment.
- The court allowed the petitioner to file an appeal within four weeks without rejection on limitation due to delays caused by a technical error in the GST portal.
- This decision emphasizes the need for removal or modification of restrictions on input tax credit before
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