Rule 86A of the CGST Rules, 2017 —– Blocking of ITC —- The petitioner challenged the action on part of the authorities in blocking the benefit ITC to the tune of Rs. 44,74,080/- in the electronic credit ledger of the petitioner, under Rule 86A. The petitioner contended that it was without giving opportunity of hearing to the petitioner and that it was a negative blocking in the nature of futuristic action. He placed reliance on the decisions of this court in Samay Alloys India (P) Ltd. vs. State of Gujarat [(2022) and also in New Nalbandh Traders vs. State of Gujarat. The advocate for the petitioner submitted that while the ITC of Rs. 43,71,672/- has been unblocked, the remainder Rs. 1,02,468/- remains still blocked for no good reasons and no reasons are indicated nor any opportunity of hearing was afforded to the petitioner. The Government Pleader submitted that appropriate decision shall be taken on or before 30th September, 2022.

Held that:- The Hon’ble High Court directed the authorities to arrive at an appropriate decision in accordance with law expeditiously after considering the facts of the case and defence of the petitioner fully.