Bombay High Court Clarifies ITC Blocking Must Be Based on Tangible Material; Premature to Decide Vires of Section 16(2)(c) CGST Act
The Bombay High Court held that blocking of Input Tax Credit (ITC) under the CGST Act must be based on tangible material and a rational basis, with each case assessed on its own facts. The Court declined to adjudicate the constitutional validity of Section 16(2)(c) at the show cause notice stage, keeping all contentions open for future proceedings.
