A Division Bench of the Gujarat High Court has recently quashed and set aside the forced generation of Input Tax Credit (ITC) while directing the revenue to recredit the reversed ITC with interest to the electronic credit ledger of the assessee. The petitioner sought to invoke extraordinary jurisdiction of the Gujarat High Court under Article 226 of the Constitution of India seeking the direction to the respondent authorities to immediately refund Rs.37.68 Crores of reversal of the Input Tax Credit reversed under threat, coercion and without the will of the petitioner.
Source: www.taxscan.in
