Getting it right, not getting it wrong
When a contractor’s Input Tax Credit worth over ten crores goes silent overnight, the taxpayer feels the shock first. But behind every Rule 86A action lies a department that has, at some point, formed a considered view that revenue is at risk — from fake invoicing, circular trading, or credit claimed without any underlying supply. The Hon’ble High Court of Jammu & Kashmir and Ladakh at Srinagar, vide judgment dated 12.08.2026 in NCC Limited [WP(C) 1935/2026], set aside the departmental communication blocking Input Tax Credit (ITC) of ₹10,45,38,432/-.
Key Points
- When a contractor’s Input Tax Credit worth over ten crores goes silent overnight, the taxpayer feels the shock first.
- But behind every Rule 86A action lies a department that has, at some point, formed a considered view that revenue is at risk — from fake invoicing, circular trading, or credit claimed without any underlying supply.
- The Hon’ble High Court of Jammu & Kashmir and Ladakh at Srinagar, vide judgment dated 12.08.2026 in NCC Limited [WP(C) 1935/2026], set aside the departmental communication blocking Input Tax Credit (ITC) of ₹10,45,38,432/-.
Published: August 20, 2026 12:46 am
Source: Greater Kashmir