The Rajasthan High Court in the case of Vinayak Plylam Marketing Vs Superintendent, Central Goods, and Service Tax and Ors. directed the GST Authority to forthwith unblock the Input Tax Credit availed in the Electronic Credit Ledger by the Petitioner since, the statutory time limits mentioned in Rule 86A of the Central Goods and Services Tax Rules, 2017 has expired.

Advocate Prakul Khurana and Advocate Rahul Lakhwani, Counsels for the Petitioner submitted that Rule 86A(3) of the Central Goods and Services Tax Rules, 2017 provides that the restriction imposed on the Input Tax Credit under Rule 86(A) of the Central Goods and Service Tax Rules 2017, shall seize to have effect after the expiry of one year from the date of imposition of such restrictions.

The Counsels for the Petitioner relied on the Judgment of Karnataka High Court in the case of Aryan Tradelink vs. Union of India and the Judgment of Bombay High Court in the case of Advent India PE Advisors Private Limited Vs Union of India and Ors.

The Division Bench headed by the Chief Justice and Justice Uma Shankar Vyas vide its order dated 15.12.2021 observed that Rules 86A(3) of the Central Goods and Services Tax Rules, 2017 provides that the restriction imposed under Rule 86A of the Central Goods and Services Tax Rules, 2017 should be lifted after the expiry of one year from the date of imposition of such restriction. Thus, the Hon’ble Bench directed the respondent to forthwith unblock the Input Tax Credit availed in the Electronic Credit Ledger by the Petitioner.