Rule 86A of the CGST Rules, 2017 – Blocking of ITC –-–- The intra court appeal filed by the appellant challenging order dated 21.03.2022. The order which has been impugned in the writ petition is an order passed by the respondent authority blocking the electronic credit ledger account of the appellant dealer. The learned Single Judge held that the appellant has not made out a case for grant of interim order prior to filing of affidavits. The counsel for the appellant submitted a representation on 21.02.2022 to the respondent to withdraw the negative blocking of their electronic credit ledger. The court observed that in case where credit of input tax were not available in the electronic credit ledger or such credit has already been utilized, the power conferred under the relevant rules cannot be invoked. The representation dated 21.02.2022 is still pending with the authority.

Held that:- The Hon’ble High Court directed the concerned respondent to dispose of the representation dated 21.02.2022 by taking note of the legal position However, if there is any illegal arrangement of input credit tax stringent action should be taken. Any order may be passed by the authority will in no manner prejudice the rights of the parties, both the appellants and the Department in the pending writ petition.