JUDGMENT :

1. Heard Shri Navin Sinha, learned Senior Advocate assisted by Shri Nishant Mishra and Shri Rahul Agarwal for the petitioner company and Shri Bipin Kumar Pandey, learned Additional Chief Standing Counsel for the respondents.

2. This writ petition has been filed by M/s North End Food Marketing Pvt. Ltd. against the order dated 26.3.2021 passed by the respondent no.3/Commissioner, Commercial Tax, U.P. Lucknow by which he has accepted the proposal for revision submitted by the Additional Commissioner, Grade-1, Commercial Tax, Moradabad Zone, Moradabad and stayed the effect and operation of the order dated 10.3.2021 passed by the Additional Commissioner, Grade-II (Appeal)-1st, Commercial Tax, Moradabad, wherein, the appeal filed by the assessee/petitioner company was allowed and decision of the respondent no.5/Deputy Commissioner, Sector-1, State Tax, Chandausi, Sambhal (Assessing Officer), communicated to the petitioner vide e-mails dated 23.7.2020 & 06.8.2020 for blocking of credit, was set aside.

3. The petitioner is a company incorporated under the provisions of the erstwhile Companies Act, 1956 having its unit at Shaktinagar, Chandausi, District Sambhal, U.P.. It is a subsidiary company of M/s Sohanlal Commodity Management Pvt. Ltd['SCMPL'] dealing in the business of procuring commodities on behalf of its customers on Pan India basis, storing such commodities in the warehouses owned and operated by SCMPL and thereafter supplying such commodities to different persons on the instructions of the customers. The SCMPL is primarily engaged in providing warehousing services for which it is registered under the provisions of the Warehouse (Development and Regulation) Act, 2007. On account of multiplicity of operations, the petitioner company maintains its books of account electronically in a centralized system prescribed under Rule 10 of the erstwhile Central Excise Rules, 2002 and Section 35 of the GST Act read with Rules 56 & 57 of the Central Goods and Services Tax Rules, 2017['CGST Rules'].

4. The petitioner is mainly dealing in “Mentha” oil in the State of Uttar Pradesh and is duly registered under the provisions of U.P. Value Added Tax Act, 2008['UPVAT Act']. The petitioner availed the credit of input tax paid on the purchases made from the dealers registered in the State of Uttar Pradesh in accordance with the provisions of UPVAT Act and after deducting the same from the output tax payable, discharged the net tax liability as per provisions contained in UPVAT Act. After enactment of Central Goods and Services Tax Act, 2017['CGST Act'] and U.P. Goods and Services Tax Act, 2017['UPGST/SGST Act'] the petitioner was allotted GSTIN No.09AABCN9927F1Z6 on 23.6.2018.

5. Section 16 in Chapter-V of SGST Act provides for eligibility and condition for taking input tax credit. The expressions “input tax”, “input tax credit” and “output tax” have been defined in clauses (62) & (63) of Section 2 of the SGST Act, which read as under:-

“Sec. 2 (62) “Input Tax” in relation to a registered person, means the central tax, State tax, integrated tax or union territory tax charged on any supply of goods or services or both made to him and includes;-

a) the integrated goods and service tax charged on import of goods;

b) the tax payable under the provision of sub-section (3) & (4) of Section 9;

c) the tax payable under the provision of sub-section (3) & (4) of Section 5 of Integrated Goods and Service Tax Act (13 of 2017); or

(d) the tax payable under the provision of sub-sections (3) & (4) of Section 9 of Central Goods and Services Tax Act, 2017 but does not include tax paid under the composition levy;

Sec. 2(63) “Input Tax Credit” mean the credit of input tax;

Sec.2 (82) “output tax” in relation to a taxable person, means the tax chargeable under this A